Question 1

2 out of 2 points

Correct

The industry practice is that, when an investor in a repo transaction needs cash early, _______.

Answer

Selected Answer:

the borrower returns the cash early upon request

Correct Answer:

the borrower returns the cash early upon request

Question 2

2 out of 2 points

Correct

Money market investors buy short-term instruments due to _______.

Answer

Selected Answer:

the short-term nature of their cash surpluses

Correct Answer:

the short-term nature of their cash surpluses

Question 3

2 out of 2 points

Correct

A covenant refers to _______.

Answer

Selected Answer:

a provision of a long-term debt contract

Correct Answer:

a provision of a long-term debt contract

Question 4

2 out of 2 points

Correct

Which of the following money market instruments has the largest volume of secondary market trading?

Answer

Selected Answer:

on-the-run Treasury bill

Correct Answer:

on-the-run Treasury bill

Question 5

2 out of 2 points