Question

2. Types of short-term bonds Short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital n borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term d being described Definit Term Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will repurchase tomorrow at a higher price. This is an example of a Commercial paper Certificate of deposit A security in which an investment company pools and manages capital from many investors in order to invest primarily in short-term financial assets that would otherwise be unavailable to the individual investors Repurchase agreement Eurodollar deposit A discounted unsecured security issued by large and exceptionally financially sound firms and sold to other sophisticated businesses Martin Multimodal Transportion (MMT) is a U.S. multinational firm that conducts business and holds funds throughout Europe and Asia Aslan operations, Marshall has deposited several million U.S. dollars in a Tokyo bank. This is an example of: O A certificate of deposit A money market mutual fund • A Eurodollar deposit A banker's acceptance A commercial paper

Answer 1

2. Tiger Communications borrowing by securing the loan with securities and on the condition of repurchase of securities at a later date at a higher price is called Repurchase Agreement

A security in which an investment company pools and manages capital from many investors to invest in short term financial assets is called Certificate of Deposit

A discounted unsecured security issued by large firms and sold to sophisticated business is called Commercial paper.

MMT depositing US dollars in Tokyo bank is called Eurodollar deposit