question 1 What does the yield spread between commercial paper and Treasury bills of the same maturity reflect? options A Only differences in liquidity. B. Only differences in credit risk. C Differences in both liquidity and credit risk. D.Differences in duration. E Differences in liquidity, credit risk, and number of international investors. QUESTION 1 ( B ) When is cornering risk higher? options A When there are political shocks. b When market volatility increases. C When the likelihood of trading with a trustworthy counterparty decreases. D.When inventories of the underlying asset become scarce
Functions of the Federal Reserve System
The Federal Reserve System looks after the financial activities and operations of the banking system. It is the apex body that has complete control over the banking regulations. All the guidelines regarding the banking system, money supply, and formulation of the monetary policy come under the purview of the Federal Reserve System. The New York Fed also helps in drafting the monetary policy and supervising the financial system.
Elastic and Inelastic Markets
Measuring the change in percentage of an economic variable with respect to change in a different economic variable is known as elasticity. This change in percentage results in a change in price concerning changes in other factors. In simple terms, when one factor brings a change to another factor, it is called elasticity.
question 1
What does the yield spread between commercial paper and Treasury bills of the same maturity reflect?
options
A Only differences in liquidity.
B. Only differences in credit risk.
C Differences in both liquidity and credit risk.
D.Differences in duration.
E Differences in liquidity, credit risk, and number of international investors.
QUESTION 1 ( B )
When is cornering risk higher?
options
A When there are political shocks.
b When market volatility increases.
C When the likelihood of trading with a trustworthy counterparty decreases.
D.When inventories of the underlying asset become scarce
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