Identify the financial instruments based on the following descriptions.

a. Issued by nonfederal government entities, these financial instruments are debt securities that fund their capital expenditures. They are exempt from most taxes imposed in the area where the securities are issued.
b. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Which of the following instruments are traded in the capital markets?
a. Eurodollar time deposits
b. Bankers' acceptances
c. Treasury bills
d. Commercial paper
e. Common stocks

The municipal bonds are a debt security are a from of debt security that is issued by the municipality or the state in order to finance the capital expenditures. They are exempted from most of the taxes that are imposed in that area.

Certificate of Deposit is defined as the savings account which holds a fixed amount of money. They are used to fund a short term financing requirements in a corporate.

The corporate bonds are financial instruments which are considered as an investment pools which buy a short term debt instruments. These instruments are in contractual agreements which provide a long term agreement to a party to use the asset.