8. At any given time, the yield on commercial paper is ____ the yield on a T-bill with the same maturity.

A. Slightly less than

B. Slightly higher than

C. Equal to

D. Unrelated to

E. A and B both occur with about equal frequency

9. Which of the following is a feature of a banker's acceptance?

A. It is a time draft drawn on the exporter's bank.

B. It is a method to help importers evaluate the creditworthiness of exporters.

C. It is a liability of the importer and the importer's bank.

D. Its interest is calculated as an add-on instrument.

E. Its maturity is greater than one year.

10. Comparing LIBOR to SOFR, which of the following is correct?

A. LIBOR is based on rates from actual loans between banks.

B. LIBOR is not widely used in either the U.S. or in foreign markets.

C. SOFR is not being used yet, but will be used in the near future.

D. U.S. Regulators are pushing for SOFR to replace LIBOR.

E. LIBOR, unlike SOFR, has never been manipulated by bankers.