Why is the yield on short-term treasury bills usually less

Assignment Help Microeconomics
Reference no: EM13191123

1. Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.
2. Why is the yield on short-term Treasury bills usually less than the federal funds rate?

Reference no: EM13191123

Questions Cloud

Calculate the volume of sulfuric acid : calculate the volume of 19.4 M sulfuric acid that must be added to water to prepare
Will it produce an inefficiently large number of departments : university is probably an M-form organization. Its president administers schools, for example, a college of business and a college of liberal arts. The college of business Each of these in turn has a dean who is responsible for faculty departments..
Define substances can act as oxidizing agents : Substances A2, B2, and C2 can act as oxidizing agents. Solution A2 is green, B2 is yellow, and C2 is red. In the reactions in which they participated they are reduced to A-, B-, and C- ion, all of which are colorless
Discovery of a new processing technology : Using demand and supply analysis, explain why this new process will not cause a surplus of crude oil. If no surplus is created, then what will be the impact of this process on the market for crude oil?
Why is the yield on short-term treasury bills usually less : Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.
Which of the type of protection convey negative externality : consider two ways to protect your car from theft. The Club ( a steering wheel lock ) makes it difficult for a car thief to take your car. Lojack ( a tracking system) makes it easier for the police to catch the car thief who has stolen it.
Define sodium hydroxide and acetic acid : determine the PH of each of the following a) 10mL of .2M Acetic acid and 1.00mL of .1M sodium hydroxide, and 9.0 mL of distilled water? B) 10 mL of sodium acetate and 1.0mL of .1M HCL and 9.0 mL of distilled water?
Define what is the heat capacity of an empty glass : What is the heat capacity of an empty glass mug weighing 300.0 g, and what quantity of heat is required to heat it from 25 oC to 75 oC?
Daily consumption of carbohydrates in diet : Bill can consume only 167 grams of carbohydrates daily,then how many cups of each food will he consume daily?

Reviews

Write a Review

Microeconomics Questions & Answers

  Show the possibility of declining average costs

Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue. Think of the graphic that showed the possibility of declining..

  Optimal pricing-consumer surplus

Find out the optimal price and quantity with standard pricing. Which is the per-customer profit for the gym? What is the consumer surplus?

  Do you get the same cost using an average inflation rate

The inflation rate over a 10 year period for an item that now costs $1000 is shown below Year 1, 10% Year 2, 0% Year 3, 10% Year 4, 0% Year 5, 10% Year 6, 0% Year 7, 10% Year 8, 0% Year 9, 10% Year 10, 0% What will be the cost at the end of year 1..

  How velocity is affected by an increase in real income

Determine how velocity is affected by an increase in real income (Y), an increase in the nominal interest rate, and an increase in the price level.

  Find and expression for the marginal rate of substitution

Find and expression for the marginal rate of substitution (MRS x,y ) at any point (x, y). Suppose x = 3 and y = 2, what is the MRS x,y ?

  Computing optimal size of production-inventory costs

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days for each year. It has orders for about 12,000 flashing lights for each year and has the ability of prod..

  Technical level of potential output

The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD model.

  Illustrate the black market for internet access

Illustrate the black market for internet access, including the implicit supply schedule, the ceiling price, the black market supply and demand, and the highest feasible black market price.

  Keynesian short run aggregate supply curve

Assume that the Keynesian short run aggregate supply curve is applicable to a country's economy. Construct appropriate diagrams to assist in answering the following questions:

  When will short run be shut down

In the short run, a firm operating in a competitive industry will shut down if price is less than average total cost, less than average variable cost.

  Leakage adjusted money multiplier

Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.

  What extent would increased government involvement

What factors affect the fuel efficiency of cars · To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers · To what extent would increased government involvement with re..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd