Money Market Securities Flashcards
1
Q
Bankers’ Acceptance
A
check drawn by an importer or exporter of goods representing a financial institution’s conditional promise to pay the face amount of the note
2
Q
Commercial paper
A
unsecured short-term promissory note issued by a corporation
3
Q
Federal Funds Rate
A
percentage charged by one institution lending to another
4
Q
Money Market
A
deals in debt instruments that mature in less than one year and are very liquid
5
Q
Repurchase Agreement
A
sale of securities accompanied with a promise to buy them back at a higher price at a future date
6
Q
T-bills
A
most actively traded money market security
