The well-developed secondary market for money market instruments makes the money market an ideal place for a firm or financial institution to warehouse surplus funds until they are needed. A. Analysis this statement explaining why banks, which would seem to have a comparative advantage in gathering information, have not eliminated the need for the money markets.

The U.S. Treasury issues notes and bonds to finance the national debt. The difference between a note and a bond is that notes have an original maturity of 1 to 10 years while bonds have an original maturity of 10 to 30 years. A. Criticize difference Treasury issues notes and bonds and municipal bonds B. Analysis different types of bonds market securities and money market securities

An obvious way to discuss the players in the money market would be to list those who borrow and those who lend. The problem with this approach is that most money market participants operate on both sides of the market. A. Criticize this Statement and state major participants in the money markets

Bond Market is determined by interest rate as coupon payment is based on the ability of firm are willing to pay their bondholder, but on the other hand Yield to maturity is also affecting supply and demand of market A. Why is the bond market so sensitive to interest rates? B. Why do interest rate change and its effect regarding COVID-19 situation? C. Do a search to find a corporate bond issue where the company has either defaulted on the payments or called back the bonds. Define what was the reason(s) for the company to either default on payments or call back the bonds? D. How would you compare the investment in bonds vs. stocks? Which one would you prefer? E. Is it a good strategy to have a combination of stocks and bonds in your portfolio?

The degree of risk varies widely among different bond issues because the risk of default depends on the companys health, which can be affected by a number of variables. A. Criticize this Statement regarding risk and return of bond markets B. Analysis How preference of bondholder is relative?