Which of the following statements is incorrect? ...

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Finance

Which of the following statements is incorrect?

  • A. If the Fed wants to increase short-term interest rates, it can sell debt securities with short-term maturities, reducing their prices and thus increasing their rates of return.
  • B. Money market is convenient for investors who temporarily have extra cash but cannot afford forgoing liquidity.
  • C. Money market securities have low default risk.
  • D. Money market securities have low liquidity.

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