The choices for each item are Federal funds, re-purchase agreement, certificate of deposit, commercial paper

2. Types of short-term bonds short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital needs of the borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term debt security being described. Definition An interest-bearing security issued by a bank or other financial intermediary that represents funds that must be kept on deposit for a specified period of time; if the funds are withdrawn prior to maturity, then the investor will incur a severe interest penalty A discounted security issued by the U.S. Treasury to finance the federal government's operations and programs The Fourth State Bank has an excess of reserves and is willing to lend them overnight to another depository institution that has a temporary shortage; this lending and borrowing transaction involves the use of 2. Types of short-term bonds short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital needs of the borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term debt security being described. Definition An interest-bearing security issued by a bank or other financial intermediary that represents funds that must be kept on deposit for a specified period of time; if the funds are withdrawn prior to maturity, then the investor will incur a severe interest penalty A discounted security issued by the U.S. Treasury to finance the federal government's operations and programs The Fourth State Bank has an excess of reserves and is willing to lend them overnight to another depository institution that has a temporary shortage; this lending and borrowing transaction involves the use of