Description Financial Instrument State and local government bonds Backed by the U.S. government, 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 U.S. Treasury bills U.S. Treasury notes and bonds 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 give their holders a class ownership in a company. They are riskier than bonds but less risky than the general class of ownership. Which of the following are money market instruments? Check all that apply. Treasury bills Common stocks Long-term bank loans Certificates of deposit Preferred stocks A financial instrument whose value is derived from the value of an underlying asset is called a