Which of the Following Money Market Investments Is Essentially a Loan

question 7

Multiple Choice

Which of the following money market investments is essentially a loan arrangement wherein a securities dealer is the "borrower" and the investor is the "lender?" The investor buys securities from the securities dealer,with an agreement to sell the securities back to the dealer at a later date for a specified higher price.

• A) Certificates of Deposit (CD)
• B) Commercial Paper
• C) Banker's Acceptance
• D) Repurchase Agreement
• E) Treasury Bill

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Definitions:

Echoic Memory

Part of the sensory memory that specifically stores auditory information for a few seconds after the original sound is heard.

Implicit

Refers to something that is understood or implied without being directly stated or expressed.

Partial Report Method

A research technique used in cognitive psychology to study the capacity and duration of short-term visual memory.

Sperling's Study

A series of experiments by George Sperling that investigated the capacity and duration of the sensory memory.