Problem set3

Problem set3 - Jason Rozenberg Banking Money and Problem...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Jason Rozenberg Money and Banking Problem Set #3 1a) Both 1b)M2 1c)M2 1d) Neither 1e) Neither 1f) M2 1g)M2 1h) M2 1i)Neither 1j)M2 1k)Neither 2) A person starting up a small business is better off raising money by taking out a bank loan then by issuing bonds for many reasons. Issuing bonds are large sums of money that is typically for bigger companies and businesses. A small business man will usually not have the resources to properly use the issued bonds. The bank loan is more convenient, and will give the person a good sum of money that will last him longer and only cost him little interest each month. Bank loans are more proper for smaller business man and give more efficient and safer results. 3a) F ederal funds rate for this week: 3.03 Prime interest rate: 6.00 Six Month Treasury Bill rate: 2.08 3b) The reason why the T-bill has a lower interest rate then the prime rate is because more people use the T-bill, so to attract more customers to the prime rate the interest rate is higher. It
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2008 for the course ACCT 201 taught by Professor Carroll during the Spring '08 term at SUNY Oswego.

Page1 / 2

Problem set3 - Jason Rozenberg Banking Money and Problem...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online