Which of the following is NOT considered a money market instrument?

Preferred stocks are classified as equity instruments, not money market instruments. Money market instruments are typically short-term debt securities that have high liquidity and are low-risk. They generally have maturities of one year or less, and examples include Treasury bills (T-bills), certificates of deposit, and commercial paper.

T-bills are government securities that mature in a year or less, making them a key component of the money market. Certificates of deposit are also considered money market instruments as they are time deposits offered by banks with specific maturity dates, often within a year. Commercial paper refers to unsecured short-term debt issued by corporations to meet immediate cash needs, fitting within the parameters of the money market as well.

On the other hand, preferred stocks represent an ownership stake in a company, which does not fall into the category of short-term debt and is subject to market fluctuations, so they do not meet the criteria for a money market instrument.