Homework Answers
Yield on the Money markets are relatively low in comperison to Bank Loans as these are relatively safe for inestor. So it cost the big corporations less. Thats why Big Corporations prefers to raise money from money market rather than the Banks.
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Question 21 Large corporations often borrow via the money markets rather than via bank loans because:...
1 pts Question 21 Large corporations often borrow via the money markets rather than via bank!...
1 pts Question 21 Large corporations often borrow via the money markets rather than via bank! loans because: government regulations prohibit the largest corporations from obtaining bank loans the yields on money market securities are often less than the interest rates on bank loans the yields on money market securities are often greater than the interest rates on bank loans None of the above. only A and B of the above.
The money market interest rate paid by corporations that borrow short-term funds in a particular country...
The money market interest rate paid by corporations that borrow short-term funds in a particular country is typically: A.equal to the rate paid by that country’s government. B. slightly higher than the rate paid by that country’s government. c.mostly influenced by the demand for and supply of long-term funds in that country. d. set by the country’s central bank.
Rate-Sensitive Bank Assets Liabilities $5 Variable-rate Loans Short-term Loans Short-term Securities Reserves Variable-rate CDs Money Market...
Rate-Sensitive Bank Assets Liabilities $5 Variable-rate Loans Short-term Loans Short-term Securities Reserves Variable-rate CDs Money Market Deposit Accounts Checkable Deposits Savings Deposits Long-term CDs Equity Capital Long-term Loans Long-term Securities 30 30 Referring to the table above, and using basic gap analysis, this bank's "gap" is $ million. (Round your response to the nearest whole number.) Referring to the table above, if interest rates suddenly increase by two percentage points, then the bank's profits change by $ whole number.) (Round...
Primary dealers none of the listed answers are correct are small banks in the primary stage...
Primary dealers none of the listed answers are correct are small banks in the primary stage of development cannot trade securities directly with the Federal Reserve Bank trade securities directly with the Federal Reserve Bank The bid/ask spread is the price of that the dealer sells securities information liquidity demonination Which of the following would be most likely to use a financial market? A state government wishing to borrow to finance a highway project A small business wishing to borrow...
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury...
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury notes. (c) Treasury bonds. (d) Treasury strips. 17. The most influential participant(s) in the U.S. money market (a) is the Federal Reserve. (b) is the U.S. Treasury Department, (c) are the large money center banks. (d) are the investment banks that underwrite securities 18. Federal funds are (a) usually overnight investments. (b) borrowed by banks that have a deficit of reserves. (c) lent by...
answer please 25. A bank borrows money from another bank on an overnight basis to meet...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
A write-down of assets by a commercial bank results in a. Fewer liabilities b. Greater net...
A write-down of assets by a commercial bank results in a. Fewer liabilities b. Greater net worth c. A loss of net worth d. None of the above Clearinghouses are used a. In conducting the business of ECNs b. By specialist systems in executing trades c. In the process of making payments using transaction deposits where more than one bank is involved d. In routing orders to over-the-counter markets More risk of holding bonds will a. Lower their yields b....
1. True or False: Suppose there is a significant shock to global financial markets. As a...
1. True or False: Suppose there is a significant shock to global financial markets. As a result, there is a “flight to quality” – foreign investors flooded the US market with capital, investing in short-term government securities – T-bills3 primarily! This should lead to a DECREASE in US market interest rates. 2. True or False: The following argument is made as to the impact of baby boomers on financial markets. As the bulk of baby boomers approach retirement, there has...
10. Open-market purchases of government bonds by the Fed will have the tendency to: A) Increase...
10. Open-market purchases of government bonds by the Fed will have the tendency to: A) Increase interest rates, the money supply, and national income. B) Increase interest rates and the money supply, but decrease national income. C) Increase interest rates, but decrease the money supply and national income. D) Decrease interest rates, but increase the money supply and national income. E) Decrease interest rates, the money supply, and national income. 11. Aggregate demand would tend to be shifted up by...
Bonds and their valuation
Fill in the blankA: (Coupons / Bond Price)B: (Bond Price / Par Value)The entity issuing the debt obligation is the borrower in the transaction. Some of the biggest issuers in the bond market are (1)(municipial governments / central governments / corporations) , such as the U.S. government and the government of U.K.; (2) government-related agencies, such as Fannie Mae and Freddie Mac; (2) (corporations / supranational banks / municipal governments), such as the state of California, Sakai City, Japan; (3)(supranational banks...
1 pts Question 21 Large corporations often borrow via the money markets rather than via bank! loans because: government regulations prohibit the largest corporations from obtaining bank loans the yields on money market securities are often less than the interest rates on bank loans the yields on money market securities are often greater than the interest rates on bank loans None of the above. only A and B of the above.
Rate-Sensitive Bank Assets Liabilities $5 Variable-rate Loans Short-term Loans Short-term Securities Reserves Variable-rate CDs Money Market Deposit Accounts Checkable Deposits Savings Deposits Long-term CDs Equity Capital Long-term Loans Long-term Securities 30 30 Referring to the table above, and using basic gap analysis, this bank's "gap" is $ million. (Round your response to the nearest whole number.) Referring to the table above, if interest rates suddenly increase by two percentage points, then the bank's profits change by $ whole number.) (Round...
Primary dealers none of the listed answers are correct are small banks in the primary stage of development cannot trade securities directly with the Federal Reserve Bank trade securities directly with the Federal Reserve Bank The bid/ask spread is the price of that the dealer sells securities information liquidity demonination Which of the following would be most likely to use a financial market? A state government wishing to borrow to finance a highway project A small business wishing to borrow...
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury notes. (c) Treasury bonds. (d) Treasury strips. 17. The most influential participant(s) in the U.S. money market (a) is the Federal Reserve. (b) is the U.S. Treasury Department, (c) are the large money center banks. (d) are the investment banks that underwrite securities 18. Federal funds are (a) usually overnight investments. (b) borrowed by banks that have a deficit of reserves. (c) lent by...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
10. Open-market purchases of government bonds by the Fed will have the tendency to: A) Increase interest rates, the money supply, and national income. B) Increase interest rates and the money supply, but decrease national income. C) Increase interest rates, but decrease the money supply and national income. D) Decrease interest rates, but increase the money supply and national income. E) Decrease interest rates, the money supply, and national income. 11. Aggregate demand would tend to be shifted up by...
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