Description

Backed by the U$.$S$.$ government, these financial instruments are fixed$-$rate debt securities

Financial Instrument with a maturity of more than one year. They are considered default free but are subject to interest rate risk.

Issued by money$-$centered financial firms, these short$-$ or medium$-$term insured debt instruments pay higher interest than a regular savings account. They are low$-$risk instruments and have low returns.

These financial instruments are investment pools that buy such short$-$term debt instruments as Treasury bills $($T$-$bills$),$ certificates of deposit $($CDs$),$ and commercial paper. They can be easily liquidated.

Money market mutual funds

Issued by corporations, these instruments can have maturities from $1-40$ years. The risk depends on the financial strength of the issuing corporation.

Which of the following are money market instruments? Check all that apply.

Treasury bills

Certificates of deposit

Corporate bonds

Preferred stocks

Long$-$term bank loans

A financial instrument whose value is derived from the value of anderlying asset is