Question

Match each marketable security with its description. (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

Answer: See explanation

Step-by-step explanation:

1. A short term, unsecured promissory note issued by a corporation. = Commercial paper

2. An obligation of the U.S. Treasury with common maturities of 91 to 182 days. = Treasury bill

3. A portfolio of marketable securities. = Money market mutual fund

4. An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. = Repurchase agreement

5. An obligation of the U.S. Treasury with mutual maturities of between one and seven years. = Treasury note

6. Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank. = Negotiable certificate of deposit

7. An instrument issued by the Federal National Mortgage Association. = Federal agency issue

8. Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. = Eurodollar deposit

9. Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities = Banker's acceptance.