Use the Following Statements to Answer This Question

question 11

Multiple Choice

Use the following statements to answer this question:
I.The major implication of backing money market funds with risky assets is an increase in money market spreads.
II.Bankers' acceptance yields are always lower than commercial paper yields.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is incorrect and II is correct.
• D)I is correct and II is incorrect.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing an action.

Tuition

The fee for instruction at a school, university, or college.

Room And Board

The combined cost of housing (room) and food/meals (board) typically for students living on a college campus.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, a fundamental concept in economics.