Questions from Financial Markets

Q: Distinguish between competitive bidding and noncompetitive bidding for Treasury securities.

Distinguish between competitive bidding and noncompetitive bidding for Treasury securities.

Q: Who issues federal funds, and what is the usual purpose of

Who issues federal funds, and what is the usual purpose of these funds?

Q: Does the Federal Reserve directly set the federal funds interest rate?

Does the Federal Reserve directly set the federal funds interest rate? How does the Fed influence this rate?

Q: Who issues commercial paper and for what purpose?

Who issues commercial paper and for what purpose?

Q: Why are banker’s acceptances so popular for international transactions?

Why are banker’s acceptances so popular for international transactions?

Q: If you are an employer, what kinds of moral hazard problems

If you are an employer, what kinds of moral hazard problems might you worry about with your employees?

Q: What characteristics define the money markets?

What characteristics define the money markets?

Q: Is a Treasury bond issued 29 years ago with six months remaining

Is a Treasury bond issued 29 years ago with six months remaining before it matures a money market instrument?

Q: Why do banks not eliminate the need for money markets?

Why do banks not eliminate the need for money markets?

Q: Distinguish between a term security and a demand security.

Distinguish between a term security and a demand security.