CIMA

Question 1

consists of financial institutions and dealers in money or credit who wish to either borrow or lend. These institutions trade short–term financial instruments, called paper.

Answer 1

Money Market

Question 2

institutions trade short–term financial instruments, called

Answer 2

Paper

Question 3

short–maturity zero coupon bonds (less than twelve months)

Answer 3

Treasury Bill

Question 4

the price one would have to pay to buy the investment

Answer 4

Ask Price

Question 5

slightly lower than the ask price, is the price that one would receive if selling the investment

Answer 5

The Bid Price

Question 6

goes to the dealer

Answer 6

Bid–Ask Spread

Question 7

Time deposits, commonly insured to up to $250,000 by the FDIC (until 2013)

Answer 7

Certificate of Deposit

Question 8

short–term loans—normally for less than two weeks and frequently for one day.

Answer 8

Repurchase Agreement

Question 9

short–term unsecured debt (usually with maturities of up to 270 days)

Answer 9

Commercial Paper

Question 10

Agreement by a bank to pay a sum of money at a future date

Answer 10

Bankers’ Acceptance

Question 11

Dollar–denominated Deposits at a bank or bank branch located outside the United States.

Answer 11

Eurodollars

Question 12

Short–term notes issued by municipalities in anticipation of tax receipts or other revenues.

Answer 12

Municipal Bonds

Question 13

is the lending rate at which bank borrow unsecured funds from other banks

Answer 13

LIBOR

Question 14

debt issued by corporations

Answer 14

Corporate Bonds

Question 15

ownership shares of a publicly–traded company

Answer 15

Common Stock