Money Market

Give typing answer with explanation and conclusion  When a bank increases its fed funds sold, its deposit balance in the Fed will _________ ; when a bank's deposit balance in the Fed increases, the bank has increased its fed funds______   Group of answer choices   increase; purchased   increase; sold   decrease; purchased   decrease; sold

Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks and invest those funds in _____. A) diversified portfolios of securities B) bank CDs C) precious metal and art

1. Which of the following is not a way in which banks lend short-term unsecured loans? Choices: By sending the amount earned from trust and investment products offered by the bank   Through a guaranteed credit line that has a commitment fee for any unused amount for the year   Through credits cards lines with a certain credit limit   By lending a single date maturity loan to a debtor 2. The following are methods of acquiring funds through long-term financing, except Choices: Issuing bonds with semi-annual coupon payment at a discounted price   Selling equity securities at an amount above the par value indicated in the stock certificate   Issuing a note that indicates a promise to pay the indicated supplier in a future date   Selling equity securities with a characteristic of both debt and equity security 3. Which is false about long-term sources of a firm's capital? Choices: Preferred shares are securities whose intrinsic value is based on prospective earnings   All types of…

Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b. Overnight borrowing by banks to provide customers short term loans c. Borrowing by banks to meet unexpected rise in customers withdrawal d. Overnight borrowing by banks to meet customers deposit

What are some of the ways that banks can borrow short-term funds when they need "liquidity"?(Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12    They can borrow directly from the Securities & Exchange Commission through the "regulatory" market.        They can borrow from the Department of Treasury through the "Treasury" window.        They can borrow another bank's reserves through the "fed funds" market.        The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day.        They can borrow directly from the Federal Reserve through the "discount window".

Can you calculate the liquidity securities indicator? Round your answer to the nearest two decimals if needed. Type your answer as percentage and not as decimal (i.e. 5.2 and not 0.052). Do not type the % symbol. Hint: Make sure to learn the other liquidity indicators as well. Cash and deposits held at depository institutions Government Securities Federal funds sold Net loans and leases Total Assets Federal funds purchased Demand deposits Time deposits Millions 699 207 213 3,569 208 1,385 2,832

8. According to the Loanable funds' theory, how are interest rates determined?9. Compare and contrast three different money market securities in terms of issuer, return, risk and tradability/liquidity.10. Explain the role of non-depository financial institutions within the financial sector? Discuss the core functions of any three of these institutions.

Which of the following assets would be considered least liquid? Group of answer choices A savings account A checking account An interest-paying checking account A money market mutual fund Series EE US savings bonds

Answer the following questions: a. Find the profit of the investment b. Find share of the bank from the profit c. Find the weightage average in the three provided boxes d. Find the profit for each type of deposit e. Find the profit rate for each deposit

Decide whether the following statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain. ​I'm already​ retired, so I need​ low-risk investments.​ That's why I put most of my money in U.S. Treasury​ bills, notes, and bonds.Choose the correct answer below. A.This makes sense because the safest investments are federally insured bank accounts and U.S. Treasury​ bills; there's virtually no risk of losing the principal invested. B.This does not make sense because U.S. Treasury​ bills, notes, and bonds are​ high-risk investments that offer prospects of higher​ returns, along with the possibility of losing the principal. C.This does not make sense because U.S Treasury bills are different than notes and bonds. The U.S Treasury bills are​ low-risk while the notes and bonds are​ high-risk. D.This makes sense because​ low-risk is a smart choice for a retired person with limited monthly income.

Below is the balance sheet for Longhorn Bank, a private bank. As a commercial bank, Longhorn Bank faces a 10% reserve requirement. This scenario applies to the questions 34 - 38. ASSETS LIABILITIES Customer Reserves deposits $1,000,000 $150,000 Loans to households and biz $850,000

27. When a bank borrows money from the Central Bank (The Fed), this fund is called A) federal funds. B) discount loans. C) federal loans. D) Treasury funds. 28. The relationship between borrowed reserves (BR), non-loan monetary base (MBn), and monetary base (MB) is A) MB = MBn - BR. B) BR = MBn - MB. C) BR = MB - MBn. D) MB = BR - MBn.

A4) Finance Would you rather borrow at the federal funds market than from the discount window if your bank is in the 99th percentile of the distribution (i.e., considered to be among the riskiest counterparties in the federal funds market)? Please consider the cost of funds (interest rate) to be your primary consideration when making this decision and answering this question. a. Yes, I would prefer to borrow at the federal funds market. b. No, I would prefer to borrow at the discount rate window.

Suppose that the central bank sells government bonds. Use a graph of the money market to show what this does to the value of money and price level.

Long-term mutual funds primarily invest in assets that have O A. Assets that have maturities of less than one year B. Assets that have maturities of greater than one year OC.US Treasury Bills O D. Hybrid cars

The cost of investing in a mutual fund includes 1. the loading charges 2. commissions when the fund buys and sells securities 3. management fees * 1 and 2 1 and 3 2 and 3 all of these choices

A bank's net interest margin represents the proportion of its investments that are financed with borrowed funds.   Group of answer choices: True False

Situation: I want to invest my 5 million pesos in Mutual funds.  Discuss the following: A. Security of MoneyB. Returns on investmentC. Risks involvedD. Impact to government and society  Conclusion of Letter A. to D.

Q1. What is a mutual fund? In what sense is it a financial institution?. Q2. How is the net asset value (NAV) of a mutual fund determined? What is meant by the term marked-to-market daily? Q3. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain $2, and charges a fee of $2 when the fund is sold on year for $52.50. What is the net rate of return from this insurance? Formula for Question 3: Net gain = Dividend + capital gain + profit from fund sold – fee

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