Description

Financial Instrument

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

These financial instruments are contractual agreements that give one party a long$-$term agreement to use an asset, by providing regular payments.

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

Long$-$term bank loans