Routinely sold in the money market

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Reference no: EM131843254

1. Which of the following is true of the coupon rate on a bond?

a) Over the life of the bond, it varies directly with market interest rates

b) Over the life of the bond, it varies inversely with market interest rates

c) It is the interest rate that one would apply to outstanding bonds for purposes of discounting for present value

d) It stays the same over the life of the bond

e) None of the above is true regarding the coupon rate

2. That very sensitive short-term interest rate that applies to overnight borrowing of excess reserves between banks-and that is closely watched as a barometer of money market conditions is:

a) the discount rate

b) the commercial paper rate

c) the federal funds rate

d) the prime rate

3. Which of the following is not routinely sold in the money market?

a) Treasury bills

b) Commercial paper

c) Bankers' acceptances

d) Common stocks

e) All are regular money market instruments

Reference no: EM131843254

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