Question

CMBs are used to smooth out _____, sold at ______, and are direct US government obligations, sold as ______.

A) Interest rates; a discount; Treasury bills.
B) Inflation; a premium; Treasury notes.
C) Currency exchange rates; face value; corporate bonds.
D) Stock market fluctuations; par value; municipal bonds.

Answer 1

CMBs, or Commercial Paper Money Market Instruments, are used to smooth out interest rates, sold at a discount, and are direct US government obligations, sold as Treasury bills (option A).

Step-by-step explanation:

CMBs, or Commercial Paper Money Market Instruments, are used to smooth out interest rates, sold at a discount, and are direct US government obligations, sold as Treasury bills (option A).