Questions from Financial Markets


Q: Why did reserve deposits increase to the point that this account represented

Why did reserve deposits increase to the point that this account represented the largest liability account on the Federal Reserve’s balance sheet in the late 2000s?

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Q: Why did U.S. government agency securities go from nothing

Why did U.S. government agency securities go from nothing to being the largest asset account on the Federal Reserve’s balance sheet in the late 2000s?

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Q: What are the three characteristics common to money market securities?

What are the three characteristics common to money market securities?

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Q: A T-bill that is 225 days from maturity is selling

A T-bill that is 225 days from maturity is selling for $98,850. The T-bill has a face value of $100,000. a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. b. Calculate th...

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Q: What is the primary risk of trading in the fed funds markets

What is the primary risk of trading in the fed funds markets? How did this risk come into play during the financial crisis of 2008–2009?

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Q: What is the difference between a repurchase agreement and a reverse repurchase

What is the difference between a repurchase agreement and a reverse repurchase agreement?

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Q: Describe the trading process for repurchase agreements.

Describe the trading process for repurchase agreements.

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Q: Why do commercial paper issues have an original maturity of 270 days

Why do commercial paper issues have an original maturity of 270 days or less?

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Q: Why do commercial paper issuers almost always obtain a rating of their

Why do commercial paper issuers almost always obtain a rating of their issues?

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Q: What factors caused the amount of outstanding commercial paper to increase from

What factors caused the amount of outstanding commercial paper to increase from 1992 through 2000 and in the mid-2000s? What factors caused the amount of outstanding commercial paper to decrease from...

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