2-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter02TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.Whichofthefollowingisnotacharacteristicofamoneymarketinstrument?A.LiquidityB.MarketabilityC.LongmaturityD.LiquiditypremiumE.Longmaturityandliquiditypremium2.ThemoneymarketisasubsectoroftheA.commoditymarket.B.capitalmarket.C.derivativesmarket.D.equitymarket.E.Noneoftheoptionsarecorrect.3.TreasuryInflation-ProtectedSecurities(TIPS)A.payafixedinterestrateforlife.B.payavariableinterestratethatisindexedtoinflationbutmaintainaconstantprincipal.C.provideaconstantstreamofincomeinreal(inflation-adjusted)dollars.D.havetheirprincipaladjustedinproportiontotheConsumerPriceIndex.E.provideaconstantstreamofincomeinreal(inflation-adjusted)dollarsandhavetheirprincipaladjustedinproportiontotheConsumerPriceIndex.4.Whichoneofthefollowingisnotamoneymarketinstrument?A.TreasurybillB.NegotiablecertificateofdepositC.CommercialpaperD.TreasurybondE.Eurodollaraccount5.T-billsarefinancialinstrumentsinitiallysoldby________toraisefunds.A.commercialbanksB.theU.S.governmentC.stateandlocalgovernmentsD.agenciesofthefederalgovernmentE.theU.S.governmentandagenciesofthefederalgovernment6.ThebidpriceofaT-billinthesecondarymarketisA.thepriceatwhichthedealerinT-billsiswillingtosellthebill.B.thepriceatwhichthedealerinT-billsiswillingtobuythebill.C.greaterthantheaskedpriceoftheT-bill.D.thepriceatwhichtheinvestorcanbuytheT-bill.E.neverquotedinthefinancialpress.7.ThesmallestcomponentofthemoneymarketisA.repurchaseagreements.B.small-denominationtimedeposits.C.savingsdeposits.D.moneymarketmutualfunds.E.commercialpaper.2-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.8.Thesmallestcomponentofthefixed-incomemarketis_______debt.A.TreasuryB.otherasset-backedC.corpor...
