Which one of the following is a method used to quote interest rates on money market instruments?
A)short basis
B)floating rate basis
C)call rate method
D)bank discount basis
E)prime rate method

Question

Quizplus · Accepted Answer

Bank discount basis is the method used to quote interest rates on money market instruments. This method expresses the interest rate as a percentage of the face value of the instrument, and it is calculated based on the discount the buyer receives when purchasing the instrument at a price lower than its face value.

Which One of the Following Is a Method Used to Quote