Which of the following is a money market security?

The correct answer identifies a money market security, which is typically characterized by short-term maturities of one year or less and relatively low risk. Money market instruments are often used for liquidity management and are considered safe investments.

In this case, the 30-year Treasury bond issued 29 years ago might seem like it could fit the definition, but it is not a current money market security. Money market securities include instruments like Treasury bills, commercial paper, and certificates of deposit that are due within one year, whereas bonds, including Treasury bonds, are generally associated with longer terms.

The TAN (Tax Anticipation Note) that matures in 14 months also exceeds the one-year threshold, which is typically the maximum for money market instruments.

A short-term T-bond mutual fund consists of various bonds, but since T-bonds themselves have longer terms and the fund’s average holding period may exceed one year, it does not fit the money market classification.

A newly issued T-note may have a maturity of more than one year, usually 2, 5, or 10 years, thus excluding it from the money market category.

Overall, identifying money market securities is key in understanding liquidity instruments in finance, with a strong focus on their relatively short maturity