Question

How have money market rates changed since last year? Consider the current economic conditions.

How have money market rates changed since last year? Consider the current economic conditions.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Money market rates has fallen drastically since last year . It could well be reflected in the performance of 10 Year Treasury bills which has gone down by almost 70 percent since the peak in 2019. There is a growing economic fear that FED could furthur cut interest rates till there are no furthur room for ratecut.So eventually rates could hit 0% in long run and it could be sensed un advance by markets. There is an impending recession and global slowdown due to coronavirus and many units of different companies are not operating and demand has slowed down .FED ,generally in such situations go for ratecuts to stimulate the demand in the economy and Bond yield reacts negatively.

Add a comment
Know the answer?
Add Answer to:
How have money market rates changed since last year? Consider the current economic conditions.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT