1. What are the fundamental characteristics of money market debt instruments? Explain
why these characteristics are important to money market participants who are investing and financing. List at least two (2) examples of money market funds.
2. What is a banker’s acceptance? Why are banker’s acceptances ideally suited for foreign trade transactions? Please include two (2) advantages of these types of arrangements.
3. Discuss three ways in which a change in the rate of an adjustable-rate mortgage can affect the borrower’s mortgage.