Money Market Review

10 Questions

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Money Quizzes & Trivia

Questions and Answers
  • 1. 
    Money market securities are short-term debt instruments (one year or less)
    • A. 

      True

    • B. 

      False

  • 2. 
    Money market securities are long-term debt instruments.
    • A. 

      True

    • B. 

      False

  • 3. 
    • A. 

      True

    • B. 

      False

  • 4. 
    • A. 

      Government

    • B. 

      Government agencies

    • C. 

      Banks

    • D. 

      Corporations

  • 5. 
    Participants to money-market include Federal Reserve Board, banks, securities dealers, and corporations.
    • A. 

      True

    • B. 

      False

  • 6. 
    Participants to money-market include which of the following: (select all that apply)
    • A. 

      Federal Reserve Board

    • B. 

      Banks

    • C. 

      Securities Dealers

    • D. 

      Corporations

  • 7. 
    Money market transactions provide an avenue for both acquiring money (borrowing) and investing (lending) excess funds for short periods
    • A. 

      True

    • B. 

      False

  • 8. 
    • A. 

      Money market transactions provide an avenue for both acquiring money (borrowing) and investing (lending) excess funds for short periods

    • B. 

      Money market transactions provide an avenue for acquiring money (borrowing)only, NOT investing (lending) excess funds for short periods

    • C. 

      Money market transactions provide an avenue for investing (lending) excess funds for short periods only, NOT for acquiring money (borrowing)

  • 9. 
    • A. 

      The period ranges from overnight to a few months, but may be as long as 1 year.

    • B. 

      The period ranges from overnight to a few months only, and cannot be as long as 1 year.

    • C. 

      The period ranges from overnight to a few years.

  • 10. 
    Money market instruments have period ranging from overnight to a few months, but may be as long as 1 year.
    • A. 

      True

    • B. 

      False