Treasury bills usually less than the federal funds rate

Reference no: EM13694660

1) Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper.

2) Why is the yield on short-term Treasury bills usually less than the federal funds rate?

Reference no: EM13694660

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