SIE (Securities Industry Essentials) Practice Exam

At issue, which of the following debt securities mature in one year or less?

1. Corporate bonds

2. Treasury notes

3. Municipal bonds

4. Money market instruments

The correct answer is: Money market instruments

Debt securities refer to financial instruments used by governments and corporations to raise funds. These securities are typically categorized by their maturity, which is the length of time until the issuer must repay the principal amount. In this question, we are specifically looking for debt securities that mature in one year or less. The other options, Corporate bonds, Treasury notes, and Municipal bonds, all have longer maturities than one year. Corporate bonds, also known as corporate debt or corporate bonds, are issued by corporations as a way to borrow money. These bonds usually have maturities ranging from 5 to 30 years. Similarly, Treasury notes, which are issued by the U.S. government, have maturities ranging from 2 to 10 years. Municipal bonds, which are issued by state and local governments, have maturities ranging from 1 to 30 years. Money market instruments, on the other hand, are short-term debt securities that have maturities of one year or less. These instruments are typically issued by banks, financial institutions, and governments. Examples of money market instruments include Treasury bills, commercial paper, and certificates of deposit. In summary, while the other options may be types of debt securities, they