Most of the time, the interest rate on Treasury notes is below that on money market securities because of their low default risk.
举一反三
- Interest rates on banker’s acceptances are low because the risk of default is very low.
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk
- Money market securities have all the following characteristics except they are not_________ A: short term. B: money. C: low risk. D: very liquid.
- Unlike most money market securities, commercial paper _________
- The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that A: the money market is in equilibrium. B: people buy bonds and the interest rate falls. C: people sell bonds and the interest rate falls. D: bond prices fall and so the interest rate falls.