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Questions and Answers
Which of the following is NOT considered a type of money market instrument?
Which of the following is NOT considered a type of money market instrument?
- Certificates of deposit (CDs)
- Treasury bills (T-bills)
- Corporate bonds (correct)
- Commercial paper
What is the main difference between money markets and capital markets?
What is the main difference between money markets and capital markets?
- Money markets are more regulated than capital markets.
- Money markets trade short-term debt instruments, while capital markets trade long-term debt instruments.
- Money markets trade stocks and bonds, while capital markets trade commodities and currencies.
- Money markets facilitate borrowing and lending for short durations, while capital markets facilitate long-term investment and financing. (correct)
Why are Treasury bills considered one of the safest money market instruments?
Why are Treasury bills considered one of the safest money market instruments?
- They are secured by collateral, ensuring repayment.
- They have long maturities, reducing the risk of default.
- They offer high interest rates, providing a greater return on investment.
- They are backed by the government, minimizing default risk. (correct)
Which regulatory body oversees the functioning of capital markets in the United States?
Which regulatory body oversees the functioning of capital markets in the United States?
Which investment banks assist companies in raising capital through initial public offerings (IPOs), debt offerings, and providing advisory services for mergers and acquisitions?
Which investment banks assist companies in raising capital through initial public offerings (IPOs), debt offerings, and providing advisory services for mergers and acquisitions?
Which market indices represent a benchmark of the overall performance of the capital market?
Which market indices represent a benchmark of the overall performance of the capital market?
Which one of the following is a characteristic of money market instruments?
Which one of the following is a characteristic of money market instruments?
What is the purpose of money market instruments?
What is the purpose of money market instruments?
What is the primary market in capital markets?
What is the primary market in capital markets?
What are stocks in capital markets?
What are stocks in capital markets?
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