financial terms

  1. T Bill
    • Treasury bill
    • short term obligations of the federal government
  2. T Note
    • Treasury Note
    • Intermediate term obligation of the federal government with maturities from 1 to 10 years
  3. Federal Agency Securities
    Securities issued by agencies such as Federal Home Loan Bank, Federal land bank, Fannie Mae & Freddie Mac
  4. CD
    • Certificate of Deposit
    • a certificate offered by banks, savings and loans, & other financial institutions for the deposit of funds at a given interest rate over a specified time period
  5. Commercial Paper
    An unsecured promissory note that large corporations issue in investors, minimum amount $25,000
  6. Bankers Acceptance
    short term securities that frequently arise from foreign trade. The acceptance is a draft that is drawn on a bank for approval for future payment and is subsequently presented to the payer
  7. Eurodollar
    U.S. dollars held on deposit by European banks & laoned out by those banks to anyone seeking dollars
  8. Money Market Funds (MMFs)
    • fund in which investors may purchase shares for as little as $500 or $1000. reinvests proceeds in high yielding bank CDs, commerical paper & other large denomination high yielding securities
    • Investors receive pro rata portion of interest proceeds daily as credit to shares
  9. Money Market (Deposit) Accounts (MMDA)
    Accounts at banks, savings and loans & credit unions where depositor receives competitive money market rates on typical min deposit $1000 have 3 deposit & 3 withdrawals a month not meant to be transaction account but place to keep excess cash balances insured up to $100,000
  10. financial paper/direct paper
    large firms dealing directly with lenders for commercial paper
  11. dealer paper
    commercial paper thru intermediate network of dealers due to companies being to small
Card Set
financial terms
financial terms