80.2K

Verified Solution

Link Copied!

Need help with all 4 questions.

QUESTION 1 Which of the following is true? (Think Carefully) One of the reasons money market securities provide safety of financial instruments' principle values is that they have relatively low "price risk" due to their relatively short periods until maturity One of the reasons money market securities provide safety to the financial instruments' principle values is that they have relatively-small "default risk." O All of the above O None of the above. QUESTION 2 Which of the following is true? (Think Carefully) The default risk of money market instruments is relatively small because lenders of these instruments are highly trusted financially. Otherwise, the borrowings will not occur in small denominations. The default risk of money market instruments is relatively high because lenders of these instruments are highly trusted financially. Otherwise, the borrowings will not occur in large denominations. O All of the above. O None of the above. QUESTION 3 Which of the following is true? (Think Carefully) Borrowers of money market instruments should be trusted as high-quality borrowers because cash lent in the money markets must be available for a quick return to the lender. Borrowers of money market instruments should be trusted as high-quality borrowers because cash lent in the money markets occurs in large denominations. O All of the above. O None of the above. QUESTION 4 Which of the following is true? (Think Carefully) One of the reasons borrowings in money markets should occur in large denominations is the benefits of diseconomies of scale associated with large transactions. One of the reasons borrowings in money markets should occur in large denominations is the benefits of reduced average costs associated with large transactions. O All of the above. O None of the above

Answer & Explanation Solved by verified expert

See Answer