00 eurod fedfunds prime 1000 rate 800 600 400 2009

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Unformatted text preview: 10.00 Rate % 8.00 6.00 4.00 2009 2008 2007 2006 2005 2004 2003 2002 2001 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 0.00 1990 2.00 Year All Rights Reserved Reserved Dr David P Echevarria 9 HOMEWORK QUESTIONS HOMEWORK A. What are the 4 main types of money market A. What instruments? instruments? B. What premiums do investors extract for reduced What liquidity? Increases in default risk? liquidity? C. Who issues commercial paper? Why is c-paper Who preferred to borrowing at prime? preferred D. How does the Repurchase (repo) agreement How work? work? E. Why are Fed funds important to financial Why institutions? institutions? F. What are Eurodollar deposits and why are they What important? important? All Rights Reserved Reserved Dr David P Echevarria 10...
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This document was uploaded on 02/11/2014.

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