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Business
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Money and Capital Markets
Quiz 11: Commercial Banks, Major Corporations, and Federal Credit Agencies in the Money Market
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Question 61
Essay
How is commercial paper rated? Why does its rating matter?
Question 62
Essay
Please explain what credit enhancements are. What specifically is asset-backed commercial paper? How have these financial devices aided the growth of the paper market?
Question 63
Essay
Federal agencies active in the financial markets were usually set up to aid so-called "disadvantaged sectors" of the economy, Who are these?Please give some examples.
Question 64
Essay
What is the difference between a government-sponsored and a federal agency? Is there a practical difference between the two?
Question 65
Essay
What are the principal investment characteristics of federal agency securities? Which groups of investors are attracted to them and why?
Question 66
Essay
Can you explain how federal agency securities are marketed?
Question 67
Essay
Explain why acceptances over the years have been attractive to exporters and importers of goods moving between different countries. Why has the volume of acceptances declined in recent years?
Question 68
Essay
What is the Eurocurrency market and why is it needed?
Question 69
Essay
Please define the term Eurodollar. Can a U. S. bank create Eurodollars? How?
Question 70
Essay
Please describe the process by which Eurocurrency deposits are created. What happens to the total volume of domestic bank reserves and deposits in the process of creating Eurocurrency deposits?
Question 71
Essay
Can Eurocurrency deposits be destroyed? How can this happen?
Question 72
Essay
What are the principal sources of Eurocurrency deposits? Please make a list.
Question 73
Essay
What role do Eurodollar deposits play in reserve management operations of U.S. banking firms? What are the advantages of Eurodol1ar borrowings over other sources of reserves for banks? What about the disadvantages?
Question 74
Essay
Please evaluate the Eurocurrency markets from a social point of view. What are their major benefits and costs to the public and to market participants? In your opinion should these markets be more closely regulated or be relatively free of regulation?
Question 75
Essay
Commercial paper purchased in the secondary market 30 days from maturity at a discount yield of 9 percent is sold 10 days later at an 8 percent discount rate. What is the investor's holding-period yield?