Short term investment options Flashcards
What is cash management trust?
raises money and invests this money in short term securities such as treasury notes. Investors are paid interest on the money they have invested. Treasury notes are short term loans, usually for period of less than six months, made to a government authority.
What is a bank bill?
A bank bill is a short term loan. The usual length of a bank kill is 30 to 180 days. A commercial bill is a non-bank loan. A commercial bill may be issued by a company. These bills are usually issued at a discount to the face value of the bill. The holder of the bill receives the face value of the bill when it matures.
What is a Term Deposit
A term deposit is an amount of money that has been invested with a financial institution such as a bank for a fixed period of time at a fixated interest rate.
