1. Which of the following is not a characteristic of money market securities:
they are short term
they are highly liquid
they are normally traded in very large denominations (i.e., high dollar transactions)
they are risk free
all the above are characteristics of money market securities
2. The very sensitive short-term interest rate that applies to overnight borrowings of excess reserves-and which is closely watched as a barometer of money market conditions is:
the discount rate
the federal funds rate
the prime rate
the bank rate