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Which of the following can initiate repurchase agreements with government?

Which of the following can initiate repurchase agreements with government?

Government securities dealers, Commercial banks, and the Federal Reserve through its open market trading desk, all initiate repurchase agreements.

Which of the following securities is not eligible for Fed trading?

Commercial paper is corporate money market debt which is NOT eligible for Fed trading. Treasury bills are issued by the U.S. Government.

Which of the following securities Cannot be margined?

Which of the following securities cannot be margined? Government securities, agency securities, investment grade money market instruments, investment grade corporate bonds and listed stocks are the marginable securities. As a general rule, structured products cannot be margined because they not readily transferable.

Which of the following money market instruments trades at par plus accrued interest?

Which of the following money market instruments trades at par plus accrued interest? Negotiable certificates of deposit (over $100,000 face amount) are issued at par and mature at par plus accrued interest. If they are traded prior to maturity, they trade with the amount of accrued interest due.

What is the meaning of money market instruments?

Money market instruments are short-term financing instruments aiming to increase the financial liquidity of businesses. The main characteristic of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.

Why banks do not eliminate the need for money market?

why do banks not eliminate the need for money markets? banks have higher costs than the money market owing to the need to maintain reserve requirements.

What are the capital market instruments?

Financial Instruments Used in a Capital Market | Financial Management

  • Securities: ‘Securities’ is a general term for a stock exchange investment.
  • Equity Shares: Equity Shares are the ordinary shares of a limited company.
  • Preference Shares:
  • Debentures:
  • Bonds:
  • Government Securities:

What is the main purpose of money market?

The money market provides financing to local and international traders who are in urgent need of short-term funds. It provides a facility to discount bills of exchange, and this provides immediate financing to pay for goods and services. International traders benefit from the acceptance houses and discount markets.

What are the advantages and disadvantages of capital market?

Capital market helps to flow money in-between so many investors which means people who supply capital & people who borrow capital. Secondary capital market also helps to develop liquidity. Securities like bonds traded in the capital market provide more interest rates to investors than banks and shares offer dividends.

What’s better than a money market account?

Money market accounts and CDs are both savings vehicles that can put your money to work for you, earning more interest than a traditional savings or checking account. Though a CD will likely have a higher interest rate than a money market account.

Is an example of Unorganised money market?

Answer. Mortgage Banks, Cooperative Banks, Insurance Companies etc. and call loan brokers, and stock brokers. The unorganised sector of the money market is largely made up of indigenous bankers, money lenders, traders, commission agents etc., some of whom combine money lending with trade and other activities.

What are the advantages and disadvantages of a money market account?

Money market investing can be very advantageous, especially if you need a short-term, relatively safe place to park cash. Some disadvantages are low returns, a loss of purchasing power and that some money market investments are not FDIC insured.

What are the features of money market instruments?

Features of Money Market Instruments

  • High Liquidity.
  • Fixed returns.
  • Maintains Liquidity in the Market.
  • Provides Funds at a Short Notice.
  • Helps in monetary policy.
  • Treasury Bills (T-Bills)
  • Commercial Papers.
  • Certificates of Deposits (CD)

What are main features of money?

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

What is capital market and its features?

Capital Market is a market for medium and long-term financial securities and instruments. It is a market where financial securities like bonds, stocks and so on are bought and sold. Both individuals and institutions are participants in the Capital Markets. Capital Market puts surplus funds to productive use.

Category: Uncategorized
Uncategorized

Which of the following can initiate repurchase agreements with government?

Which of the following can initiate repurchase agreements with government?

Government securities dealers, Commercial banks, and the Federal Reserve through its open market trading desk, all initiate repurchase agreements.

Which of the following securities is not eligible for Fed trading?

Commercial paper is corporate money market debt which is NOT eligible for Fed trading. Treasury bills are issued by the U.S. Government.

Which of the following securities Cannot be margined?

Which of the following securities cannot be margined? Government securities, agency securities, investment grade money market instruments, investment grade corporate bonds and listed stocks are the marginable securities. As a general rule, structured products cannot be margined because they not readily transferable.

Which of the following money market instruments trades at par plus accrued interest?

Which of the following money market instruments trades at par plus accrued interest? Negotiable certificates of deposit (over $100,000 face amount) are issued at par and mature at par plus accrued interest. If they are traded prior to maturity, they trade with the amount of accrued interest due.

What does a 100% margin requirement mean?

3 Amount available to be withdrawn from your margin account as a loan or used to purchase securities that aren’t marginable (i.e., they have a 100% margin. requirement). The use of margin cash available will increase the debit balance in your account.

Which security has the longest maturity?

Treasury bonds

What is the 3 month Treasury bill rate?

0.02%

Is Treasury a note?

A Treasury note (T-note for short) is a marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. Treasury notes are available from the government with either a competitive or noncompetitive bid.

What is the T bill?

A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids.

Are T-bills a good investment?

T-bills are one of the safest investments, but their returns are low compared to most other investments. When deciding if T-bills are a good fit for a retirement portfolio, opportunity cost and risk need to be considered. In general, T-bills may be appropriate for investors who are nearing or in retirement.

What is the T Bill rate today?

Treasury securities

This week Month ago
91-day T-bill auction avg disc rate 0.03 0.02
182-day T-bill auction avg disc rate 0.04 0.04
Two-Year Treasury Constant Maturity 0.16 0.16
Five-Year Treasury Constant Maturity 0.81 0.80
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