Economics Money And Banking

Running head : Characteristics of Financial InstrumentsNameUniversityLecturerCourse CodeMatrix of the Characteristics of Financial InstrumentsFinancial instruments are bully arrangements that have been classified into various types depending on their attributed characteristics and structure and are easily tradable in pecuniary foodstuffs . They are advantageous in that they allow efficient flow of capital without carrying along the literal amount of cash in the financial markets . These financial instruments exit include the Demand Deposits which are amounts deposited by a psyche in a bank on legal savvy to withdraw upon demand without requiring any notice to be effrontery in advance , Corpopace Bonds which are monies borrowed by larger corporations which are not government activity owned (there is an agreement surrounded by the borrower and the corporations that the money must be repaid upon the expiration of the maturity issue . Also there is Treasury Bills which are debt instruments that mature 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 , Commercial 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 local government , Lotto Tickets which are drawn lot prize aims which are a form of gambling , Commercial Loans which are loans mature by banks to individuals or corporations for business purposes and there is Stock 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 jeopardize LiquidityDemandDepositsbanks Individuals and corporations Closed- worry rates No fixed maturity date cashbox run Cash reserveCorporateBondsLarge corporations Financial companies , banks and industrial firms stiff interest rate over one yearCorporate village cashTreasuryBillsCommercial banks Individuals and small firms clip interest rate 360 daysNo liquidity benefit cashCommercialp Money market mutual funds and commercial banks Financial companies banks and industrial firms Fixed interest rate 5-45 daysDefault risk Cash reserves 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 years or upon winningBogus lottery clubs and taxation Fixed cash or goodsThe quest is a complete a yield curve display yields of Treasury securities for some day...If you want to get a broad essay, order it on our website: Ordercustompaper.com

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