During 2008, the difference in yield (the yield spread) between 3-month AA-rated financial commercial paper and 3-month AA-rated nonfinancial commercial paper steadily increased from its usual level of close to zero, spiking to over a full percentage point at its peak in October 2008. Which of the following explains this sudden increase?
A. Increased yield spreads tend to occur because of the inefficient nature of nonfinancial commercial paper when economic instability is present.
B. The increase in the yield spread was due to government efforts to ease the debt burden for financial companies during the financial crisis.
C. The increase in the yield spread was a result of the decrease in demand for financial commercial paper due to the uncertainty and soundness of financial companies and banks.
D. The increase in the yield spread was caused by an increase in the supply of financial commercial paper to fund future real estate investments.
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 23:30, rbriezz
The uno company was formed on january 2, year 1, to sell a single product. over a 2-year period, uno’s acquisition costs have increased steadily. physical quantities held in inventory were equal to 3 months’ sales at december 31, year 1, and zero at december 31, year 2. assuming the periodic inventory system, the inventory cost method which reports the highest amount for each of the following is inventory december 31, year 1/ cost of sales year 2 a: lifo fifo b: lifo lifo c: fifo fifo d: fifo lifo
Answers: 3
Business, 22.06.2019 11:00, xxaurorabluexx
If the guide wprds on the page are "crochet " and "crossbones", which words would not be on the page. criticize, crocodile, croquet, crouch, crocus.
Answers: 1
Business, 22.06.2019 12:00, kaylallangari549
In the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom has a comparative advantage in the production of:
Answers: 2
Business, 22.06.2019 14:30, kaylahill14211
You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should
Answers: 1
You know the right answer?
During 2008, the difference in yield (the yield spread) between 3-month AA-rated financial comme...
Questions in other subjects:
History, 11.12.2019 05:31
Mathematics, 11.12.2019 05:31
Mathematics, 11.12.2019 05:31
History, 11.12.2019 05:31
Computers and Technology, 11.12.2019 05:31
Mathematics, 11.12.2019 05:31
