Describe the following money market instruments: Federal Funds, Commercial Paper, CDs, Bankers Acceptances, Eurodollars, Bank Prime Loans and T-bills.
Classify them by issuer (the borrower).
Prepare a table showing the three-month rates for the present, for a year ago and for five years ago.
For the most recent period, explain the differences between the rates.
Did the ranking of the rates of the various instruments change over time? In other words, which instrument had the highest rate five years ago, last year and now, the next highest, etc.? What would account for the changes in ranking, if any?