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:
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A.equal to the rate paid by that country’s government. |
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B. slightly higher than the rate paid by that country’s government. |
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c.mostly influenced by the demand for and supply of long-term funds in that country. |
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d. set by the country’s central bank. |
Homework Answers
The correct answer is Option B
Money market refefs to the market where the short term funds are borrowed examples include treasury bills , commercial papers etc.
The money maket instruments carry higher raye of return than usual becuase it is more liquid in nature as compared to long term borrowings and there is less risk associated to it.
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The money market interest rate paid by corporations that borrow
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