Under Exempt Securities, which category explicitly includes money market instruments?

• A. Certain money market instruments
• B. Municipal securities
• C. Public Utility Securities
• D. Employee benefit plans

Answer: (A)

Under exempt securities, very short-term, high-quality debt instruments traded in the money market are explicitly recognized as a separate category. These instruments—such as commercial paper, banker's acceptances, and certain certificates of deposit—are designed to be highly liquid and carry low credit risk. Because of their short maturities and strong liquidity, they’re treated as exempt from registration, so the category that explicitly includes money market instruments is the one labeled as money market instruments.

Municipal securities, public utility securities, and employee benefit plans are not described as the money market category, and while some of them may be exempt for other reasons, they don’t specifically designate money market instruments.