Question: Assignment : Commercial paper borrowing has continued to decline, with October 2016 reports listing borrowing at the lowest level in over a decade. Please read

Assignment:

Commercial paper borrowing has continued to decline, with October 2016 reports listing borrowing at the lowest level in over a decade. Please read more information here: https://www.reuters.com/article/usa-commercialpaper/u-s-commercial-paper-market-shrinks-to-smallest-in-16-years-idUSL2N1CC0SX (Links to an external site.)Links to an external site.

The article ends with a statement: the Reserve Primary Funds share value fell below $1 or broke the buck shortly after the collapse of Lehman Brothers during the global financial crisis.

What do you think will happen with the prime rate? If anticipating a change, how quickly do you think this will affect commercial paper borrowing?

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