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Which of the following is the best reason that changing the rates overnight loans can be achieved by buying and selling government bonds? ernment bonds
Which of the following is the best reason that changing the rates overnight loans can be achieved by buying and selling government bonds?
ernment bonds and overnight loans to banks are both low-risk and low-liquidity, and so a bank will choose whichever one has a better return when looking for thaGovt sort of investment.
Government bonds are always preferred to overnight loans, and so the yield rates of bonds have a great impact on overnight loan rates.
None of the other responses.
Government bonds and overnight loans to banks are both low-risk and high-liquidity, and so a bank will choose whichever one has a better return when looking for that sort of investment.
Overnight loans are always preferred to government bonds, and so the yield rates of bonds have a great impact on overnight loan rates.
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