- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 43. Fixed-Income Markets: Issuance, Trading, and Funding
- Subject 2. Primary and Secondary Bond Markets
CFA Practice Question
Cash settlement is used for many money market trades. It is made on the ______.
A. trade date
B. trade date + one day
C. trade date + three days
Explanation: Trading and settlement take place on the same day.
User Contributed Comments 1
| User | Comment |
|---|---|
| Otakuziev | The fixed- income securities covered so far have been cash market securities. Money market securities often are settled on a “same day,” or “cash settlement,” basis. |