XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of? a. Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank. b. Money market instruments are more liquid than funds on deposit at a commercial bank. c. Money market instruments are safer than leaving funds on deposit at a commercial bank. d. Money market instruments involve a financial middleman.
XYZ Corporation is trying to decide whether it should buy money market instruments or leave its funds on deposit at a commercial bank. Which of the following is an advantage of buying money market instruments over leaving funds on deposit at a commercial bank that XYZ should be aware of? a. Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank. b. Money market instruments are more liquid than funds on deposit at a commercial bank. c. Money market instruments are safer than leaving funds on deposit at a commercial bank. d. Money market instruments involve a financial middleman.
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 4P
Related questions
Question
XYZ Corporation is trying to decide whether it should buy
a.
Money market instruments offer a higher yield than leaving funds on deposit at a commercial bank.
b.
Money market instruments are more liquid than funds on deposit at a commercial bank.
c.
Money market instruments are safer than leaving funds on deposit at a commercial bank.
d.
Money market instruments involve a financial middleman.
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