A and B both occur with about equal frequency

Question 11 pts

At any given time, the yield on commercial paper is ____ the yield on a T-bill with the same maturity.

[removed] a. slightly less than
[removed] b. slightly higher than

 

[removed] c. equal to
[removed] d. A and B both occur with about equal frequency

 

Flag this Question

Question 21 pts

When firms sell commercial paper at a ____ price than they projected, their cost of raising funds is ____ than projected.

[removed] a. higher; higher
[removed] b. lower; lower

 

[removed] c. A and B
[removed] d. none of the above

 

Flag this Question

Question 31 pts

An investor purchased an NCD a year ago in the secondary market for $980,000. He redeems it today and receives $1,000,000. He also receives interest of $30,000. The investor’s annualized yield on this investment is

[removed] 2.0 percent.
[removed] 5.10 percent.

 

[removed] 5.00 percent.
[removed] 2.04 percent.

 

Flag this Question

Question 41 pts

Which money market transaction is most likely to represent a loan from one commercial bank to another?

[removed] banker’s acceptance
[removed] negotiable CD

 

[removed] federal funds
[removed] commercial paper

 

Flag this Question

Question 51 pts

The yield on NCDs is ____ the yield of Treasury bills of the same maturity. The difference between their yields would be especially large during a ____ period.

[removed] greater than; recessionary
[removed] greater than; boom economy

 

[removed] less than; boom economy
[removed] less than; recessionary

 

Flag this Question

Question 61 pts

Bullock Corp. purchases certain securities for $4,921,349, with an agreement to sell them back at a price of $4,950,000 at the end of a 30-day period. The repo rate is ____ percent.

[removed] 7.08
[removed] 6.95

 

[removed] 6.99
[removed] 7.04

 

[removed] none of the above

 

Flag this Question

Question 71 pts

A ____ is not a money market security.

[removed] Treasury bill
[removed] negotiable certificate of deposit

 

[removed] bond
[removed] banker’s acceptance

 

[removed] All of the above are money market securities.

 

Flag this Question

Question 81 pts

Freeman Corp., a large corporation, plans to issue 45-day commercial paper with a par value of $3,000,000. Freeman expects to sell the commercial paper for $2,947,000. Freeman’s annualized cost of borrowing is estimated to be ____ percent.

[removed] 14.39
[removed] 14.13

 

[removed] 14.59
[removed] 14.33

 

[removed] none of the above

 

Flag this Question

Question 91 pts

Large corporations typically make ____ bids for T-bills so they can purchase larger amounts.

[removed] competitive
[removed] noncompetitive

 

[removed] very small
[removed] none of the above

 

Flag this Question

Question 101 pts

Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds.

[removed] True
[removed] False

 

 

Get Help from Experts

If you’re still asking yourself, “Who can help me write my paper from scratch", don’t hesitate to use us. Experienced writers will immediately write, proofread, or improve your academic paper. They can also help you choose a topic and edit your references into APA or MLA format. So, what are you waiting for?

Find your writer