1. Why do most money market securities have large denominations?
2. Given the functions of the money markets, why is it necessary for money market securities to have a maturity of one year or less and low default risk?
3. How does a repo differ from a Fed funds transaction? How do their rates compare?
4. Who are the major participants in money markets?
5. What are the three main ways to express T Bill rates of return (name in ascending value order)?

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Money market securities often have large denominations because they are primarily aimed at instituti... View the full answer