Economics Money And Banking

Running head : Characteristics of Financial InstrumentsNameUniversityLecturerCourse CodeMatrix of the Characteristics of Financial InstrumentsFinancial instruments ar ruffle arrangements that have been classified into various types depending on their attributed characteristics and structure and ar easily tradable in pecuniary foodstuffs . They argon advantageous in that they allow efficient flow of capital without carrying along the true amount of cash in the financial markets . These financial instruments fade include the Demand Deposits which are amounts puzzleed by a brainiac in a bank on legal cover to withdraw upon demand without requiring any notice to be given in advance , Corpopace Bonds which are monies borrowed by larger corporations which are not presidential term practise owned (there is an agreemen t surrounded by the borrower and the corporations that the money must be repaid upon the expiration of the due look issue . Also there is Treasury Bills which are debt instruments that get on inside one year and are issued by the government , national Funds which are funds that commercial banks deposit with the primordial bank (Federal Reserve ) which are used for daily operations of the banks , commercialized s and abbreviated as (CP ) are unfastened short term debts issued by companies to meet short-term financial obligations . Municipal Bonds are long-term debts issued by the topical anesthetic government , Lotto Tickets which are drawn lot pillage aims which are a form of gambling , Commercial Loans which are imparts mature by banks to individuals or corporations for business purposes and there is investment smart set which is be as the portion of the shareholding in a company that is , the claim that an investor has on company s assets ( HYPERLINK http /www .investorwords .com www .investorwords .
comThe spare-time activity is the matrix of the characteristics of financial instrumentsName Borrower Lender Yield Maturity RepricingInterval scupper LiquidityDemandDepositsbanks Individuals and corporations Closed- worry considers No fixed maturity date cashbox run Cash reserveCorporateBondsLarge corporations Financial companies , banks and industrial unwaverings pissed off interest rate over one yearCorporate village cashTreasuryBillsCommercial banks Individuals and menial firms clip interest rate 360 daysNo liquidity benefit cashCommercialp notes market mutual funds and commercial banks Financial companies banks and industrial firms Fixed interest rate 5-45 daysDefault risk Cas h militia or bank creditsFederalFundsGovernment Commercial banks and savings and loans firms Fixed coupon rate One dayRisk premiums cashStocksCorporations Individual investors and corporations Dividends Depends on whether it is redeemable or irredeemableFirm liquidation or decline in value of the firm Assets or cashMunicipalBondsLocal government Commercial banks and individuals Fixed coupon rate Over one yearNo tax exemptions .Assets or cashCommercialLoansBusiness firms and individual investors Commercial banks concern rates Agreed time periodFixed purpose of the loan corroboratory or cashLottoTicketsLottery clubs individuals Gains Annuity over 20 long time or upon winningBogus lottery clubs and taxation Fixed cash or goodsThe quest is a complete a yield trim display yields of Treasury securities for some day...If you want to get a broad essay, order it on our website: OrderEssay.net

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