Question

In: Finance

Rank the following interest rates from lowest to the highest and identify it is a source...

  1. Rank the following interest rates from lowest to the highest and identify it is a source (S) or use (U) of capital. If it is both a source and use of capital, then state both (B)

    • - Federal Funds Rate (FFR)

    • - LIBOR

    • - Interest on Reserves (IOR)

    • - Discount Rate (DR)

    • - Prime Rate

    • - Risk Free Rate

    • - Reverse Repurchase Agreements (Repos)

Solutions

Expert Solution

Lowest to the highest

1.Prime Rate - U

Prime rate is the rate of commercial banks for overnight lending to each other. it is for the use of capital.

2.Discount rate (DR)- S

The rate set by the federal reserve for lending to other banks and it is usually a source of capital.

3. Libor - B

Libor is the basic rate of lending which is used by banks for reference in setting the rates.

4.Federal Funds rate FFR - B

It is a rate at which depository institutions lend reserve balances to other institutions on collateral basis.

5. Reverse Repurchase Agreements (Repos) - B

It is a rate at which Federal bank borrow money from the commercial bank. So, it is both source and use of capital.

6. Risk free rate - U

7. Interest on reserve (IOR) -U


Related Solutions

Rank the following bonds based on their interest rate risk, from the lowest to the highest,...
Rank the following bonds based on their interest rate risk, from the lowest to the highest, if all other terms of the bonds are the same: an inverse floater, a floater, and a fixed-rate bond.
Rank the following certificates of deposit from highest to lowest effective rates: A) 4 years at...
Rank the following certificates of deposit from highest to lowest effective rates: A) 4 years at 18.03% compounding every other month B) 4 years at 18.10% compounding quarterly C) 2 years at 18.00% compounding monthly D) 2 years at 17.90% compounding twice a month
Rank these systems in order of decreasing entropy. Rank from highest to lowest entropy. To rank...
Rank these systems in order of decreasing entropy. Rank from highest to lowest entropy. To rank items as equivalent, overlap them. 1/2 mol of liquid radonat 100 K 1 mol of nitrogen gas at273 K and 40 L 1/2 mol of radon gas at 273 K and 20 L 1 mol of radon gas at 273 K and 40 L 1/2 mol of radon gas at 100 K and 20 L 1 mol of nitrogen dioxide gas at 273 K...
Rank the following option-free bonds based on their reinvestment risk, from the highest to the lowest:...
Rank the following option-free bonds based on their reinvestment risk, from the highest to the lowest: Bond U: a 20-year zero-coupon bond Bond V: a 20-year 8% coupon bond Bond W: a 2-year 8% coupon bond.
Rank the following in order from best (highest rate of return) to worst (lowest rate of...
Rank the following in order from best (highest rate of return) to worst (lowest rate of return). Investment One: 12% p.a. compounding continuously Investment Two: 11% p.a. compounding continuously Investment Three: 11.50% p.a. compounding semi-annually Investment Four: 13% p.a. compounding annually Investment Five: 12% p.a. compounding monthly Select one: a. The rank from highest to lowest is: 4, 1, 3, 5, 2 b. The rank from highest to lowest is: 2, 3, 5, 1, 4 c. The rank from highest...
In the following set of elements, rank them from LOWEST first ionization energy to HIGHEST first...
In the following set of elements, rank them from LOWEST first ionization energy to HIGHEST first ionization energy.       -       1.       2.       3.       4.       5.       6.          He       -       1.       2.       3.       4.       5.       6.          Ar       -       1.       2.       3....
9. Rank the following in order from best (highest rate of return) to worst (lowest rate...
9. Rank the following in order from best (highest rate of return) to worst (lowest rate of return). Investment One: 12% p.a. compounding continuously Investment Two: 11% p.a. compounding continuously Investment Three: 11.50% p.a. compounding semi-annually Investment Four: 13% p.a. compounding annually Investment Five: 12% p.a. compounding monthly Select one: a. The rank from highest to lowest is: 4, 1, 3, 5, 2 b. The rank from highest to lowest is: 5, 1, 4, 3, 2 c. The rank from...
Rank these aqueous solutions from highest boiling point to lowest boiling point. 1 = highest boiling...
Rank these aqueous solutions from highest boiling point to lowest boiling point. 1 = highest boiling point; 4 = lowest boiling point 0.40 m C2H6O2 0.20 m Na3PO4 0.30 m KNO3 0.20 m C6H12O6  
18.Rank the following bonds, from highest to lowest interest rate risk: 2-year zero coupon, 2-year 5%...
18.Rank the following bonds, from highest to lowest interest rate risk: 2-year zero coupon, 2-year 5% coupon bond, 30-year 5% coupon bond, 30-year, zero coupon bond. A.30-year zero coupon bond, 30-year 5% coupon bond, 2-year 5% coupon bond, 2-year zero coupon bond B.30-year zero coupon bond, 30-year 5% coupon bond, 2-year zero coupon bond, 2-year 5% coupon bond C.30-year 5% coupon bond, 30-year zero coupon bond, 2-year 5% coupon bond, 2-year zero coupon bond D.2-year 5% coupon bond, 2-year zero...
Rank the following material combinations from highest to lowest risk of galvanic corrosion. (Show your reasoning)...
Rank the following material combinations from highest to lowest risk of galvanic corrosion. (Show your reasoning) a) Copper with iron b) Titanium with tantalum c) Cobalt with gold d) Cobalt with titanium e) Chromium with tantalum f) Titanium with stainless steel
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT