Chap 2: MONEY MARKET

Câu 1: Which of the following financial instruments has the lowest risk?

• Treasury bill (T-bill)

• Certificate of Deposit (C.D)

• Commercial Paper (C.P)

• Repurchase Agreement (Repo)

CÂU 2: Risk-free rate (RFR) often is rate of:

• Treasury bill (T-bill)

• Certificate of Deposit (C.D)

• Commercial Paper (C.P)

• Repurchase Agreement (Repo)

Câu 3: Which of the financial instruments below is regularly used in international trade?

• Treasury bill (T-bill)

• Certificate of Deposit (C.D)

• Bankers’ Acceptances (B.A)

• Repurchase Agreement (Repo)

Câu 4: The common point of money market instruments is:

• Long-term

• High liquidity

• High rate of return

• All of the above

Câu 5: Which instrument can be traded on O.M.O?

• Municipal bond

• Treasury bond (T-bond)

• Certificate of Deposit (C.D)

• All of the above

Câu 6: The holder of T-bill will not suffer from:

• Default risk

• Reinvestment risk

• Inflation risk

• Interest risk

Câu 7: Expansionary monetary policy can be implemented by:

• Selling Treasuries to member bank

• Buying Treasuries from member bank

• Selling corporate bonds

• Buying corporate bonds

Câu 8: Contractionary monetary policy can be implemented by:

• Selling Treasurys to member bank

• Buying Treasurys from members bank

• Selling corporate bonds

• Buying corporate bonds

Câu 9: In the case of high inflation, the Central Bank should:

• Implement the expansionary monetary policy

• Sell securities on open market

• Buy securities on open market

• Implement outright transaction

Câu 10: Discount instrument are issued at

• Face value

• Face value plus interest

• A price lower than face value

• A price higher than face value