Description

Financial Instrument

Issued by nonfederal government entities, these financial instruments are debt securities that fund their capital expenditures. They are exempt from most taxes imposed in the area where the securities are issued.

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.

Issued by corporations, these financial instruments fund their long$-$term financing requirements.