Answer: Stated on a simple interest basis.

The correct answer is **C** because the rate of return on money market instruments is typically stated on a simple interest basis. This differs from bond yields-to-maturity, which are annualized and compounded (making **A** incorrect). Additionally, money market instruments with varying times-to-maturity do not share a common periodicity for annual rates (making **B** incorrect). This aligns with the CFA curriculum's focus on calculating and interpreting yield measures for money market instruments.

Author: LeetQuiz Editorial Team