Answer to Question #297789 in Finance for Ayzaa

Question

In two lists, rank the following money markets instruments in term of their liquidity and safety :

a) U.S Treasury bills

b) Negotiable CDs

c) Repurchase agreements

d) Commercial paper

Answer 1

Liquidity starting with the most liquid:

1.      Repurchase agreements

2.      Commercial paper

3.      Negotiable CDs

4.      U.S Treasury bills

Safety starting with the safest:

1.      U.S Treasury bills

2.      Negotiable CDs

3.      Repurchase agreements

4.      Commercial paper