XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of?
A) Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank.
B) Money market instruments are safer than leaving funds on deposit at a commercial bank.
C) Money market instruments are more liquid than funds on deposit at a commercial bank.
D) Money market instruments involve a financial middleman.
Correct Answer:
Verified
Q14: Ryan is planning to enter a noncompetitive
Q15: Which of the following is NOT a
Q16: The government doesn't actually pay interest on
Q17: Suppose you buy a 30-day T-bill with
Q18: Suppose you buy a 120-day T-bill with
Q20: The money market is a market of
Q21: Which of the following statements about negotiable
Q22: How does the auction for US Treasury
Q23: Assume that Merrill Lynch, a government securities
Q24: In 2008, the Federal Reserve began paying
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents