Money market securities have all the following characteristics except they are not ().
A. short term
B. money
C. low risk
D. very liquid
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Federal funds ().
A. are short-term funds transferred between financial institutions, usually for a period of one day
B. actually have nothing to do with the federal government
C. provide banks with an immediate infusion of reserves
D. are all of the above
Finance companies raise funds in the money market by selling ().
A. commercial paper
B. federal funds
C. negotiable certificates of deposit
D. Eurodollars
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%