ESSENTIALS OF INVESTMENTS
(GLOBAL EDITION) CHAPTER 2
QUESTIONS WITH CORRECT ANSWERS
2024-2025
moneyLmarketsL-LcorrectLanswer-includeLshort-term,LhighlyLliquid,LandLrelativelyLlow-riskLdebtLinstruments
treasuryLbillsL-LcorrectLanswer-short-
termLgovernmentLsecuritiesLissuedLatLaLdiscountLfromLfaceLvalueLandLreturningLtheLfaceLamountLatLmaturit
y
certificateLofLdepositL-LcorrectLanswer-aLbankLtimeLdeposit
commercialLpaperL-LcorrectLanswer-short-termLunsecuredLdebtLissuedLbyLaLlargeLcorporations
bankers'LacceptanceL-LcorrectLanswer-
anLorderLtoLaLbankLbyLaLcustomerLtoLpayLaLsumLofLmoneyLatLaLfutureLdate
eurodollarsL-LcorrectLanswer-dollar-
denominatedLdepositsLatLforeignLbanksLofLforeignLbranchesLofLAmericanLbanks
repurchaseLagreementsL(repos)L-LcorrectLanswer-short-
termLsalesLofLgovernmentLsecuritiesLwithLanLagreementLtoLrepurchaseLtheLsecuritiesLatLaLhigherLprice
federalLfundsL-LcorrectLanswer-fundsLinLtheLaccountsLofLcommercialLbanksLatLtheLferderalLreserveLbank
LIBORL-LcorrectLanswer-lendingLrateLamongLbanksLinLtheLLondonLmarket
treasuryLnotesLorLbondsL-LcorrectLanswer-
debtLobligationsLofLtheLfederalLgovernmentLwithLoriginalLmaturitiesLofLoneLyearLofLmore
(GLOBAL EDITION) CHAPTER 2
QUESTIONS WITH CORRECT ANSWERS
2024-2025
moneyLmarketsL-LcorrectLanswer-includeLshort-term,LhighlyLliquid,LandLrelativelyLlow-riskLdebtLinstruments
treasuryLbillsL-LcorrectLanswer-short-
termLgovernmentLsecuritiesLissuedLatLaLdiscountLfromLfaceLvalueLandLreturningLtheLfaceLamountLatLmaturit
y
certificateLofLdepositL-LcorrectLanswer-aLbankLtimeLdeposit
commercialLpaperL-LcorrectLanswer-short-termLunsecuredLdebtLissuedLbyLaLlargeLcorporations
bankers'LacceptanceL-LcorrectLanswer-
anLorderLtoLaLbankLbyLaLcustomerLtoLpayLaLsumLofLmoneyLatLaLfutureLdate
eurodollarsL-LcorrectLanswer-dollar-
denominatedLdepositsLatLforeignLbanksLofLforeignLbranchesLofLAmericanLbanks
repurchaseLagreementsL(repos)L-LcorrectLanswer-short-
termLsalesLofLgovernmentLsecuritiesLwithLanLagreementLtoLrepurchaseLtheLsecuritiesLatLaLhigherLprice
federalLfundsL-LcorrectLanswer-fundsLinLtheLaccountsLofLcommercialLbanksLatLtheLferderalLreserveLbank
LIBORL-LcorrectLanswer-lendingLrateLamongLbanksLinLtheLLondonLmarket
treasuryLnotesLorLbondsL-LcorrectLanswer-
debtLobligationsLofLtheLfederalLgovernmentLwithLoriginalLmaturitiesLofLoneLyearLofLmore