Question

A government treasury department is responsible for

Q: Answer-A government treasury department is responsible for managing the government's short-term borrowing n...

CMBs are specifically designed to meet the temporary cash flow mismatches of the government and are issued for maturities less than 91 days.

managing the government's short-term borrowing needs. They are considering issuing a money market instrument to raise funds for a period of fewer than 91 days. Which of the following instruments would be the most appropriate choice for the government in this scenario?

A Treasury Bills (T-Bills)

B Commercial Paper (CP)

C Certificate of Deposit (CD)

D Cash Management Bills (CMBs)

E Repurchase Agreements (Repos)

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A government treasury department is responsible for

Solution