Identify the financial instruments based on the following descriptions.

a. Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
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.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Question

contestada

Respuesta :

codiepienagoya codiepienagoya · Answer 1 · 2021-06-21T22:36:55+02:00

Answer:

The solution to the given point can be defined as follows:

Explanation:

For point a:

TREASURY NOTE: For further than a year, Treasury notes were issued for the federal reserves.

For point b:

COMMERCIAL PAPER: Brief securities mostly on corporate debt Sar financial markets.

For point c:

MONEY MARKET MUTUAL FUND: In short-term assets, the Financial Market Fund invests.

For point d:

PREFERENCE SHARES: Preferred shareholders are much more divergent than owners, and less than the shareholders were dealt with.