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9. Which of the following would NOT be considered a money market rate? (Points :

ID: 2788784 • Letter: 9

Question

9. Which of the following would NOT be considered a money market rate? (Points : 3)        the prime rate
       the (reference) Treasury bond rate
       the London interbank offer rate (LIBOR)
       the federal funds rate Question 10.10. Which of the following instruments are traded in a capital market? (Points : 3)        Negotiable bank CDs
       Eurodollars
       Commercial paper
       U.S. government agency securities
       none of the above are sold in capital markets 9. Which of the following would NOT be considered a money market rate? (Points : 3)        the prime rate
       the (reference) Treasury bond rate
       the London interbank offer rate (LIBOR)
       the federal funds rate

Explanation / Answer

Q9) the (reference) Treasury bond rate

Q 10.10) U.S. government agency securities

U.S. government agency securities are capital market instruments.They are Long-term debt instruments issued by the U.S treasury to finance the deficits of the federal government. They are most liquid capital market instrument.