Question

In which of the following case would direct use of money markets be most appropriate? ____...

In which of the following case would direct use of money markets be most appropriate?

____

A)        The federal government needs $5 million to build a new bridge

B)        A firm has surplus cash on hand that it will not need for roughly six months

C)        An individual investor who has extra $5,000 would like to invest for 30 days

D)        A commercial bank has an immediate need for additional cash to make a loan

E)        Both (B) and (D)

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

Answer: Option D is correct
A commercial bank has an immediate need for additional cash to make a short term loan.
Money markets are used by financial institutions to raise short term funds.

Add a comment
Know the answer?
Add Answer to:
In which of the following case would direct use of money markets be most appropriate? ____...
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
  • the low Managing in Financial Markets Money Market Portfolio Dilemma As the treasurer of a corporation,...

    the low Managing in Financial Markets Money Market Portfolio Dilemma As the treasurer of a corporation, one of your jobs is to maintain investments in liquid securities such as Treasury securities and commercial paper. Your goal i to earn as high a return as possible but without takin much of a risk a. The yield curve is currently upward sloping, such that 10-year Treasury bonds have an annualized yield 3 percentage points above the annualized yield of three-month T-bills. Should...

  • Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves...

    Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves to buy government bonds from the Federal Reserve. Commercial banks sell government bonds to the Federal Reserve. Commercial banks loan out excess reserves O A check clears from Bank A to Bank B. < Prey 5 of 35

  • Managing in Financial Markets Money Market Portfolio Dilemma As the treasurer of a corporation, one of...

    Managing in Financial Markets Money Market Portfolio Dilemma As the treasurer of a corporation, one of your jobs is to maintain investments in liquid securities such as Treasury securities and commercial paper. Your goal is to earn as high a a. The yield curve is currently upward slopin that 10-year Treasury bonds have an annualized as possible but without taking much of a risk Such percentage points above the annualized yield of three-month T-bills. Should you consider using some of...

  • Which of the following is not a condition under which a prudent manager would accept some...

    Which of the following is not a condition under which a prudent manager would accept some risk in financing? Predictable cash-flow patterns Inventory is highly perishable. The price of inventory is stable. Basic access to capital markets For most modern corporations, the more cash they have, the better off they are. True False just-in-time inventory management typically pushes the cost of holding inventory from the manufacturer to the manufacturer's suppliers. True False Characteristics of a money market deposit account include...

  • Use time value of money techniques to answer the following questions. Round all interest rate calculations...

    Use time value of money techniques to answer the following questions. Round all interest rate calculations to four decimal places. Round all dollar amounts to the nearest whole dollar. (1) TIME VALUE OF MONEY PROBLEMS Griggsville Company needs $3,000,000 for expansion of its manufacturing plant at December 31, 20X9. The company is able to earn a 5% annual return on its investments, compounded monthly. If the company begins investing in an account on January 1, 20X5 for this expansion, how...

  • pate in the financial markets. Interpret the following statements. tory institutions, invest in mutual funds, purchas...

    pate in the financial markets. Interpret the following statements. tory institutions, invest in mutual funds, purchas insurance policies, or invest in pensions? Flow of Funds Exercise Roles of Financial Markets and Institutions This continuing exercise focuses on the interactions of a single manufacturing firm (Carson Company) in the financial markets. It illustrates how financial markets and institutions are integrated and facilitate the flow of funds in the business and financial environment. At the end of every chapter, this exercise provides...

  • Question 1 (1 point) The four elements of a financial system are (1) institutions including banks...

    Question 1 (1 point) The four elements of a financial system are (1) institutions including banks and non-financial entities like households, 2) financial products, (3) venues where financial products can be exchanged and (4) ___________. Question 2 (1 point) For the past 65 years, the U.S. financial system has been characterized by, Question 2 options: a) Households that are surplus units, a government that is a surplus unit, businesses that are deficit units and a foreign sector is a surplus...

  • Question 4: Debt markets (15 Marks) Please answer the following questions. Show all your workings when...

    Question 4: Debt markets (15 Marks) Please answer the following questions. Show all your workings when calculations are required and round off your FINAL result to TWO decimal places a) Pearson Publishing Ltd needs to borrow money for two purposes: purchase of inventory and purchase of a building to expand its business. Please advise this company on how to raise funds for these two purposes. In your discussion you need to define and distinguish between the debt markets advised. (6...

  • a) Pearson Publishing Ltd needs to borrow money for two purposes: purchase of inventory and purchase...

    a) Pearson Publishing Ltd needs to borrow money for two purposes: purchase of inventory and purchase of a building to expand its business. Please advise this company on how to raise funds for these two purposes. In your discussion you need to define and distinguish between the debt markets advised. (6 marks) b) Pearson decides to issue a 90-day commercial paper at a yield of 2.5% p.a. If the face value of the paper is $150,000, how much fund will...

  • 1. Which of the following is true regarding spending and saving? a. Money that is spent...

    1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...

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