Bonds And Money Markets

Question 1

What do you get in unit-linked annuities

Answer 1

Units

Question 2

Reasons for holding cash

Answer 2

Protect monetary values
Opportunities
Uncertain liabilities
Recent received cashflow
Short term liabilities
General economic uncertainty
Recession expected interest rates expected to rise
Depreciation of domestic currency
Diversification

Question 3

Seven types of money market instruments

Answer 3

Treasury bills
Local authority bills
Bills of exchange
Certificates of deposits
Commercial paper
Term deposits
Call deposits

Question 4

Why hold money market instruments

Answer 4

Liquidity