in general, money market securities are _ securities
Investors can raise money from two markets.
1) Capital market.
2) Money market
Capital market where long term funds are generated.
Money market where short term funds are generated.
Answer: Short term.
Bank certificates of deposit are the safest and most liquid of all the money market securities. True or False?
Which of the money market securities is the most liquid and considered the most risk-free? Why?
26) Money market securities are sometimes referred to as cash equivalents because 26) A) they are high-risk C) they are low-denomination B) they are not liquid D) they are safe and marketable
Commercial papers and other money market securities are known for their high liquidity and lower risk however during the financial crisis of 2007 through 2009 commercial papers experience large decline. Explain the main reasons for commercial paper market collapse and how the intervention of the fed rescued this Market
Money market securities are characterized by: I. Maturity less than 1 year II. Safety of the principal investment III. Low rates of return I and III only o I, II, and III I and II only I only
10. An open market sale of Treasury securities ___________ the price of Treasury securities, thereby __________ the yield on Treasury securities. This sale of Treasury securities __________ the monetary base and __________ the money supply. a. Decreases, increases, decreases, decreases b. Increases, decreases, increases, decreases c. Increases, decreases, increases, increases d. Decreases, increases, increases, decreases
11) If the money multiplier is 10, the purchase of $1 billion of securities by the Fed on the open market causes a A) $10 billion decrease in the money supply. B) $1 billion decrease in the money supply C) $1 billion increase in the money supply. D) $10 billion increase in the money supply.
Question 22 1 pts Which of the following money market securities act like post-dated checks in that the seller of a product is unable to receive the cash from a sale until a future date? Banker's acceptances Commercial paper Negotiable CD's Repurchase agreements
4- When the Fed conducts open-market sales, a. it sells Treasury securities, which decreases the money supply. b. it lends money to member banks, which decreases the money supply. c. it borrows from member banks, which increases the money supply. d. it sells Treasury securities, which increases the money supply. 5- When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program such as new...
securities have a maturity of one year or less; ____ securities generally have relatively high liquidity. Money market; money market Money market; capital market Capital market; money market Capital market; capital market