Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions. Description Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.. Issued by major banks, these short-term instruments pay higher interest than Treasury securities, but still have low returns. Risk depends on the financial strength of the bank. These financial instruments are U.S. dollar deposits outside the United States that earn interest over a certain time period. Risk associated with these deposits depends on the risk of the issuing bank. 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 instruments are traded in the capital markets? Check all that apply. Commercial paper Bankers acceptances Negotiable certificates of deposit Corporate bonds Preferred stocks Financial Instrument U.S. Treasury bills Negotiable certificates of deposit The process through which savings and loan associations (S&Ls), banks, and entities such as Fannie Mae and Freddie Mac create financial instruments by combining other financial assets, such as mortgages and credit card debt, is called Grade It Now Save & Continue