Money market: Quiz

Question 1: The core of the money market consists of banks borrowing and lending to each other, using ________, repurchase agreements and similar instruments. Commercial paper market Zero-coupon bond Corporate bond Bond

Question 2: The money market is a component of the ________ for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Debt Bond (finance) Financial market Finance

Question 3: ________ - Unsecured promissory notes with a fixed maturity of one to 270 days; usually sold at a discount from face value. Corporate bond market Commercial paper Zero-coupon bond Bond

Question 4: They are lent for the ________. Federal funds rate Committee Fed Funds Probability Federal Open Market Federal Reserve System

Question 5: Finance companies, such as ________, typically fund themselves by issuing large amounts of asset-backed commercial paper (ABCP) which is secured by the pledge of eligible assets into an ABCP conduit. GMAC GMAC-RFC General Motors Saturn Corporation

Question 6: States and local governments issue municipal paper, while the ________ issues Treasury bills to fund the US public debt.

United States Secretary of the Treasury

Bureau of Engraving and Internal

Printing United States Department of the Treasury Revenue Service

Question 7: priced by reference to) the ________ (LIBOR) for the appropriate term and currency. Euro Interbank Offered Rate Eurodollar Futures contract London Interbank Offered Rate

Question 8: Certain large corporations with strong credit ratings, such as ________, issue commercial paper on their own credit. Vivendi NBC Universal General Electric NBC

Question 9: ________ - Time deposits, commonly offered to consumers by banks, thrift institutions, and credit unions. Certificate of deposit Interest Bond market Interest rate

Question 10: Interest-bearing deposits held by banks and other depository institutions at the ________; these are immediately available funds that institutions borrow or lend, usually on an overnight basis. United States dollar Central bank Great Depression Federal Reserve System