Which of the following securities has a pre-arranged buyback agreement?

	a.	Treasury bonds
	b.	Repurchase agreement
	c.	Money market fund
	d.	Variable rate demand notes

1 points

QUESTION 6

Suppose that your firm currently has an accounts receivable from an international customer that is incorporated in a country with a very stable government. Which risk does this situation refer to?

	a.	Foreign exchange risk
	b.	Event risk
	c.	Political risk
	d.	Maturity risk

1 points

QUESTION 7

Suppose that your firm currently holds a money market instrument issued by a company that has a weak credit rating. Which risk does this situation refer to?

	a.	Default risk
	b.	Liquidity risk
	c.	Maturity risk
	d.	Foreign exchange risk