Questions from Financial Markets


Q: In a Treasury auction of $2.1 billion par value

In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted: If only these competitive bids are received, who will receive T-bills, in what quantity, and at wha...

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Q: If the Treasury also received $750 million in noncompetitive bids,

If the Treasury also received $750 million in noncompetitive bids, who will receive T-bills, in what quantity, and at what price? (Refer to the table in problem 11.) Table from Problem 11:

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Q: If you want to earn an annualized discount rate of 3.

If you want to earn an annualized discount rate of 3.5%, what is the most you can pay for a 91-day Treasury bill that pays $5,000 at maturity?

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Q: Why does the U.S. government use the money markets

Why does the U.S. government use the money markets?

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Q: Why do loan sharks worry less about moral hazard in connection with

Why do loan sharks worry less about moral hazard in connection with their borrowers than some other lenders do?

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Q: What motivated regulators to impose interest ceilings on bank savings accounts?

What motivated regulators to impose interest ceilings on bank savings accounts? What effect did this eventually have on the money markets?

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Q: Why do businesses use the money markets?

Why do businesses use the money markets?

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Q: What purpose initially motivated Merrill Lynch to offer money market mutual funds

What purpose initially motivated Merrill Lynch to offer money market mutual funds to its customers?

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Q: Why are more funds from property and casualty insurance companies than funds

Why are more funds from property and casualty insurance companies than funds from life insurance companies invested in the money markets?

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Q: Which of the money market securities is the most liquid and considered

Which of the money market securities is the most liquid and considered the most risk-free? Why?

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