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Are the following statements true or false, please justify your answer? A) When Government decides to borrow from the public through issuing Treasury Bills with
Are the following statements true or false, please justify your answer?
A) When Government decides to borrow from the public through issuing Treasury Bills with maturity of six months, they rely on primary money market. (6 marks)
B) The market price of a bond () -that pays periodic coupon interest should always equal the fair value (PV) of the same bond. (4 marks)
C) When the Federal Reserve or any Central bank injects liquidity in the market and increases the money supply, then the interest rate decreases.
(3 marks)
D) Money market financial instruments are less risky than capital market financial instruments. (3 marks)
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