Finance companies raise funds in the money market by selling ().
A. commercial paper
B. federal funds
C. negotiable certificates of deposit
D. Eurodollars
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Money market instruments issued by the U.S. Treasury are called ().
A. Treasury bills
B. Treasury notes
C. Treasury bonds
D. Treasury strips
Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yield if held to maturity is about ().
A. 1.5%
B. 2%
C. 3%
D. 6%
Money market instruments ().
A. are usually sold in large denominations
B. have low default risk
C. mature in one year or less
D. have high liquidity
Eurodollars ().
A. are time deposits with fixed maturities and are, therefore, somewhat illiquid
B. may offer the borrower a lower interest rate than can be received in the domestic market
C. are limited to London banks
D. are all of the above