Securities firms can act both as brokers and as dealers.

Which of the following is not a money market security?

Strong economic growth tends to place downward pressure on interest rates.

There is an active secondary market for repos.

If a bond sells above its par value, it is called a ____ bond.

If the coupon rate of a bond is _______ the yield to maturity, the price of the bond should be _________ the par value.

During periods of heightened uncertainty about the economy, investors tend to shift from risky money market securities to Treasury securities.

Commercial paper is a short-term debt instrument issued only by well- known, credit-worthy firms and is typically unsecured.

The yield of a newly issued Treasury bill that is held to maturity will always be Lower than the Treasury bill Discount.

Which of the following securities probably has the lowest degree of default risk?

In the ____________ strategy, funds are evenly allocated to bonds in each of several different maturity classes.

Which of the following financial institutions does not frequently participate in repurchase agreements?

As interest rates decrease, short-term bond prices increase by a greater degree than long-term bond prices.

Strong economic growth tends to place downward pressure on interest rates.

If a bond pays interest semiannually, which of the following adjustments needs to be made to correctly compute the price of the bond?

At a given point in time, the yield on commercial paper is __________ the yield on a T-bill with the same maturity.

An investor purchases a six-month (182-day) T-bill with a Rs10,000 par value for Rs9,850. If the investor holds the Treasury bill to maturity, his annualized yield is ____ percent.

Which of the following is not a money market security?

Treasury bills