Which of the Following Securities Is a Money Market Instrument

They generate fixed-income for the investor and short term maturity make them highly liquid. Which of the following securities is a money market.

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A Commercial paper B Treasury bond C Municipal bond D Treasury note E Mortgage security.

. Importance of the Money Market. 34Which of the following securities is a money market instrument. Treasury bills commercial papers negotiable cer.

Marketable securities are also known as. We review their content and use your feedback to keep the quality high. This preview shows page 11 - 14 out of 44 pages.

The bank discount rate is lower than the bond equivalent yield. Characteristics of money market securities. View the full answer.

The Securities Act of 1933 is also known as the. Prep for the financial exam with our sample questions. Consider a money market instrument with 48 days to maturity and a quoted ask price of 99.

D All of the above. Which one of the following money market securities. Money market instruments are debt securities with short-term maturities typically one year or less.

In money market short term securities time period or maturity of which is less than one year are dealt in. C ADRs and GDRs. Which of the following securities is a money market instrument.

The bond equivalent yield is an effective annual rate. Most of the money market instruments provide fixed returns. C Floating of companies.

View the full answer. We review their content and use your feedback to keep the quality high. A Mobilisation of savings.

Owing to this characteristic money market instruments are considered as close substitutes of money. Which of the following are instruments of money market. The most common money market instrument utilized in the Feds open market operations is a.

Decrease the average maturity on fixed-rate bonds. One of the key features of these financial assets is high liquidity offered by them. They can be easily converted into cash where need be.

Which of the following securities is a money market instrument A Mortgage backed. D All of the above. Who can invest in money market instruments.

Money market instruments are securities that have a maturity period of one year or less than one year. Which of the following securities is a money market instrument. Treasury notes are marketable securities issued by US government f.

33 ______ A Repurchase agreements B Jumbo certificates of deposit C Money market preferred stock D Commercial paper E US. Long maturity and liquidity premium. 33 Which one of the following money market securities generally has the shortest life.

Only commercial paper is a. The yield to. They include currency check deposits as well as money market funds certificates of deposit and savings accounts.

D Lowering transaction cost. The main money market instruments are Treasury bills commercial papers certificate of deposits and call money. A Mortgage security B Treasury bond C Treasury note D Municipal bond E Commercial paper D.

Following is the explanation of all the options given in the question. All of the following are money market instruments except - Financial Questions with explanations from our expert instructors. Pages 13 Ratings 100 3 3 out of 3 people found this document helpful.

C Floating of companies. Features of Money Market Instruments. The money market is a market for short term transactions.

You sold a futures contract on oats at a futures price of 23375 and at the time of expiration the price was 26125. Financial Markets Class 12 MCQs Questions with Answers. Which of the following isare not characteristic of a money market instrument.

Reduce the investment in money market securities. Most pension fund contributions are. Course Title ECON 4400.

The size of the money supply affects interest rates consequently influencing economic growth. Which of the following securities is a money market instrument. Have very low default risk making them the safest investment.

Treasury bills federal agency notes certificates of deposit CDs eurodollar deposits commercial paper bankers acceptances and repurchase agreements are examples of instruments. 7 The trading of stock that was previously issued takes place A usually with the assistance of an investment banker. Which two of the following statements are correct as they relate to this instrument.

The money market is defined as dealing in debt of less than one year. Many of these instruments of the money market are part of the US. Because they are short-term instruments money market securities are highly liquid and they provide a relatively high degree of safety because most issuers have high credit rat- ings.

It is primarily used by governments and corporations to keep their cash flow steady and for investors to make a modest profit. They are targeted to meet short term capital needs for a business or the government thus mature within a short period. B Price determination of securities.

It is highly liquid as it has instruments that have a maturity below one year. Tap card to see definition. The short-term debts and securities sold on the money marketswhich are known as money market instrumentshave maturities ranging from one day to one year and are extremely liquid.

A Treasury note B Treasury bond. Experts are tested by Chegg as specialists in their subject area. Which of the following is not a money market instrument.

All of the following are subject to the rules governing retail communications EXCEPT. Which one of the following is not a function of financial market.

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