• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Money market instruments

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Money market instruments

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 28, 2020 at 6:25 pm #593378
    leo10
    Member
    • Topics: 36
    • Replies: 18
    • ☆☆

    Hi Sir,
    I have this question which I am not sure why Commercial Paper is the best answer.

    At a recent board meeting of HCF Co, a stock-market listed company based in the country of Treadwell, a non-executive director suggested that the election of a new government may have an impact on HCF Co’s business going forward. The finance director has been given responsibility for considering the impact of the new government on HCF Co and for reporting back at the next board meeting.

    HCF are considering sources of short term and long term finance as they have identified borrowing needs for the next 9 months and separately for the next 5 years. Possible sources will be considered ahead of the next board meeting.

    A second non-executive director raised the problem of agency theory with the other non-executive directors and was asking for guidance on what actions can be taken to reduce the risks.

    If HCF Co wishes to borrow funds for the next 6 months which of the following money market instruments could they use?

    Certificate of deposit
    Treasury bill
    Money market account
    Commercial paper

    To me they can all be for 6 months?

    Thank you
    Leo

    October 29, 2020 at 9:57 am #593413
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    HFC is borrowing.

    Certificates of deposit, treasury bills, and money market account are for depositing not for borrowing.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in