Government Bonds
Which money market instrument is used to facilitate international trade and has a maximum maturity of 270 days?
Banker's acceptances = international trade financing, 270-day max, bank guaranteed.
Complete Analysis & Legal Rationale
Banker's acceptances are time drafts guaranteed by a bank, primarily used in international trade. They have a maximum maturity of 270 days and are traded at a discount in the money market.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
T-bills can have maturities up to one year.
Matches the verified teaching point in the explanation.
Negotiable CDs typically have maturities from 2 weeks to 1 year or more.
Repos are very short-term, often overnight or a few days.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.