7. Which of the following is not a characteristic of money market securities: (Points : 3)

they are short term they are highly liquid they are normally traded in very large denominations (i.e., high dollar transactions) they are risk free all the above are characteristics of money market securities

Question 8.8. The very sensitive short-term interest rate that applies to overnight borrowings of excess reserves-and which is closely watched as a barometer of money market conditions is: (Points : 3)

the discount rate the federal funds rate the prime rate the bank rate