Match each marketable security with its description.

Question

(a) Eurodollar deposit
(b) Banker's acceptance
(c) Federal agency issue
(d) Commercial paper
(e) Repurchase agreement
(f) Treasury bill
(g) Money market mutual fund
(h) Negotiable certificate of deposit
(i) Treasury note
1. ________ A short term, unsecured promissory note issued by a corporation.
2. ________ An obligation of the U.S. Treasury with common maturities of 91 to 182 days.
3. ________ A portfolio of marketable securities.
4. ________ An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future.
5. ________ An obligation of the U.S. Treasury with mutual maturities of between one and seven years.
6. ________ Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank.
7. ________ An instrument issued by the Federal National Mortgage Association.
8. ________ Funds deposited in banks located outside the U.S. and denominated in U.S. dollars.
9. ________ Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities.

Answer 1

1. (d) Commercial paper
2. (f) Treasury bill
3. (g) Money market mutual fund
4. (e) Repurchase agreement
5. (i) Treasury note
6. (h) Negotiable certificate of deposit
7. (c) Federal agency issue
8. (a) Eurodollar deposit
9. (b) Banker's acceptance