What are the principal goals usually pursued by money market investors? Define (a) money or market risk,
Question:
What are the principal goals usually pursued by money market investors?
Define (a) money or market risk, (b) default risk, (c) inflation risk, (d) currency risk, and (e) political risk. Which of these risks are minimized by purchasing money market instruments? Does investing in the money market avoid all of the foregoing risks?
How are yield spreads figured in the money market? Why is this important to know?
Describe the structure of interest rates in the money market. Which instrument anchors the market and appears to be the foundation for other interest rates? Can you explain why this is so? Could the "anchor" of today's money market change in the future? Why?
What does the term commercial paper mean?
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary