F11-money markets Flashcards
1
Q
defines a money market
A
sold in large scales
low default risk
less than 1 year
2
Q
wholesale markets
A
large transactions
3
Q
purpose of money market
A
place for warehousing
solve cash-timing problems
4
Q
participants
A
riksbank banker clearing företag försäkringsbolag fonder
5
Q
statsskuldsväxel
A
löpande skuldebrev för att finansiera statsskulden
6
Q
(CD) certificate of deposit
A
bank-issued security that specifies deposit interest rate maturity date can be bought and sold until maturity interest rate is negotiated
7
Q
commercial papper
A
securities by corporations
are more unsecure
interest rate reflects firms level of risk
8
Q
compare money markets
A
interest rate
liquidity
price
9
Q
treasury bills
A
most liquid security from treasury department
no interest
discount from par
10
Q
bankers acceptance
A
order to pay specified amount of money on given date
