Questions from Financial Markets


Q: Explain how the Fed's facility programs improved liquidity in some debt markets

Explain how the Fed's facility programs improved liquidity in some debt markets.

See Answer

Q: When does the Fed use a stimulative monetary policy and when does

When does the Fed use a stimulative monetary policy and when does it use a restrictive-monetary policy? What is a criticism of a stimulative monetary policy? What is the risk of using a monetary polic...

See Answer

Q: Compare the recognition lag and the implementation lag.

Compare the recognition lag and the implementation lag.

See Answer

Q: Why do financial market participants closely monitor money supply movements?

Why do financial market participants closely monitor money supply movements?

See Answer

Q: How do you think the shape of the yield curve for commercial

How do you think the shape of the yield curve for commercial paper and other money market instruments compares to the yield curve for Treasury securities? Explain your logic.

See Answer

Q: Who issues commercial paper? Which types of financial institutions issue commercial

Who issues commercial paper? Which types of financial institutions issue commercial paper? Why do some firms create a department that can directly place commercial paper? Which criteria affect the dec...

See Answer

Q: How can small investors participate in investments in negotiable certificates of deposits

How can small investors participate in investments in negotiable certificates of deposits (NCDs)?

See Answer

Q: Explain how each of the following would use banker’s acceptances: (

Explain how each of the following would use banker’s acceptances: (a) exporting firms, (b) importing firms, (c) commercial banks, and (d) investors.

See Answer

Q: What is a bond indenture? What is the function of a

What is a bond indenture? What is the function of a trustee, with respect to the bond indenture?

See Answer

Q: Explain how the credit crisis that began in 2008 affected the default

Explain how the credit crisis that began in 2008 affected the default rates of junk bonds and the risk premiums offered on newly issued junk bonds.

See Answer