What characteristics define the money markets?

2. Is a Treasury bond issued 29 years ago with six months remaining before it matures a money market instrument?

3. Why do banks not eliminate the need for money markets?

4. Why does the Jamaican government use the money markets?

5. Why do businesses use the money markets?

6. Which of the money market securities is the most liquid and considered the most risk-free? Why?

7. Distinguish between competitive bidding and non-competitive bidding for Treasury securities.

8. Who issues commercial paper and for what purpose?

9. Why are banker's acceptances so popular for international transactions?

10. If you want to earn an annualized discount rate of 3.5%, what is the most you can pay for a 91-day Treasury bill that pays $5,000 at maturity?

11. How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?

12. In a Treasury auction of $2.l billion par value 91-day T-bills, the following bids were submitted:

Bidder	Bid Amount	Price
1	$500 million	$0.9940
2	$750 million	$0.9901
3	$1.5 billion	$0.9925
4	$1 billion	$0.9936
5	$600 million	$0.9939

If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?

13. If the Treasury also received $750 million in noncompetitivebids, who will receive T-bills, in what quantity, and at what price? (Refer to the table under problem 12.)