I Money Market Chapter 2 Asset Classes and Financial Instruments e EuroDollars bank time deposit d Bankers Acceptance a Treasury Bills T Bills An order to a bank by a customer to pay a sum of short term highly liid and relatively low risk debt instruments Short Term government securities issued at a Short Term Unsecured debt issued by large dollar denominated deposits at a foreign brancg of discount from face value and returning the face value at maturity b Certificates of Deposit CDs c Commercial Paper corporations money at afuture date American Banks securities with an agreement to repurchase at a higher price from the broker who borrows money from a bank The bank can call bak the money at any time h Federal unds al reserve London are willing to lend to themselves indiviual buying stocks on margin usually buys them i London Interbank Offer Rate LIBOR f Repurchase Agreement Repos Funds in the accoutns of commercial banks at the ferder Short Term sales of government is the rate at which large banks I g Brokers Call some government sponsored agencies issue own d Municipal Bods Munis a Treasury Notes Bonds debt obligations of the federal government treasury inflation protected securities are pegged to the CPI with maturities of 1 year or more b TIPS c Federal Agency Debt Debt FannieMae FreddieMac GinnieMAe government municipality are issued to finance particular projects and ii Revenue Bonds are backed by revenue from the project i e turnpikes ports airports hospitals Tax exempt bonds issed by state and local i General Obligation Munis backed by taxing power of iii No federal nor state taxes on the interest proceeds means lower Yields II Bond arket
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