Test Bank For Investments Canadian 8th Edition By Bodie
1. Which of the following is
a characteristic of a money market instrument?
C. long maturity
D. liquidity premium
E. Both long maturity and liquidity premium
2. The money market is a subsector of the
A. commodity market.
B. capital market.
C. derivatives market.
D. equity market.
E. None of the options
3. Which one of the following is not a money market instrument?
A. Treasury bill
B. Negotiable certificate of deposit
C. Commercial paper
D. Treasury bond
E. Eurodollar account
4. T-bills are financial instruments initially sold by ________ to raise funds.
A. chartered banks
B. the federal government
C. provincial and local governments
D. agencies of the federal government
5. The bid price of a T-bill in the secondary market is
A. the price at which the dealer in T-bills is willing to sell the bill.
B. the price at which the dealer in T-bills is willing to buy the bill.
C. greater than the asked price of the T-bill.
D. the price at which the investor can buy the T-bill.E. never quoted in the financial press.
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