Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

The correct answer is money market instruments because these securities are specifically designed to provide short-term financing and typically mature in one year or less. Money market instruments include Treasury bills, commercial paper, repurchase agreements, and certificates of deposit, all of which generally have maturities that range from overnight to one year.

This short duration makes money market instruments less sensitive to interest rate changes compared to longer-term debt securities, making them a stable choice for investors seeking liquidity and safety.

In contrast, FNMA bonds, GNMA bonds, and Treasury notes all have longer maturities. FNMA and GNMA bonds usually have maturities that extend beyond one year, with many being structured to have terms of 5, 10, or even 30 years. Treasury notes are medium-term government securities that mature between two to ten years. Therefore, they do not fit the criteria of maturing in one year or less, highlighting why money market instruments are the appropriate choice in this context.