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HELP ME SOLVE MY FINANCE MULTIPLE CHOICE 5) Repos are A) usually low-risk loans. B) usually collateralized with Treasury securities C) low interest rate loans.
HELP ME SOLVE MY FINANCE MULTIPLE CHOICE
5) Repos are A) usually low-risk loans. B) usually collateralized with Treasury securities C) low interest rate loans. D) all of the above. E) only A and B of theabove. 6) Commercial Paper securities A) are issued only by the largest and most creditworthy corporations, as they are unsecured. B) carry an interest rate that varies according to the firm's level of risk. never have a term to maturity that exceeds 270 days. D all of the above. 2) only A and B of the above. 7) Unlike most money market securities, Commercial Paper A) is not generally traded in a secondary market. B usually has a term to maturity that is longer than a year. C) is not popular with most money market investors because of the high default risk. D) all of the above. E) only A and B of the above. - 8) Banker's Acceptances A) can be bought and sold until they mature. B) are issued only by large money center banks. C) carry low interest rates because of the very low default risk. D) are all of the above. E) are only A and B ofthe above. -9) The primary reason that individuals and firms choose to borrow long-term is to A) reduce the risk that interest rates will fall before they pay off their debt. B) reduce the risk that interest rates will rise before they pay off their debt. C) reduce monthly interest payments, as interest rates tend to be higher on short-term than lon term debt instruments. D) reduce total interest payments over the life of the debt Step by Step Solution
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