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:

Ranked Preferences

A method of ordering alternatives based on their level of desirability or utility to an individual or group.

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Economic Analysis

The systematic approach for comparing the costs and benefits of different courses of action in terms of their impact on the economy.

Paired-Choice Majority Voting

A voting method where alternatives are voted on in pairs, with the winner from each pair moving on to subsequent rounds until a majority winner is chosen.