(a) Most money market securities do not pay interest. Instead the investor pays less for the security than it will be worth when it matures. (b) Pension funds invest a portion of their assets in the money market to have sufficient liquidity to meet their obligations.
C) Unlike most participants in the money market, the U.S. Treasury Department is always a demander of money market funds and never a supplier. D) All of the above are true. E) Only A and B of the above are true. D) All of the above are true.
B) Money markets are used extensively by businesses both to warehouse surplus funds and to raise short-term funds. C) The single most influential participant in the U.S. money market is the U.S. Treasury Department. D) All of the above are true.
B) The U.S. government and corporations borrow in the money markets because cash inflows and outflows are rarely synchronized. C) The Federal Reserve is the single most influential participant in the U.S. money market. D) All of the above are true.