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Unformatted text preview: 4. Ownership claims on a company’s real capital assets. 5. Short term loans, usually overnight, made by depository institutions using deposits they hold at the Federal Reserve. 6. A short term unsecured promissory note (IOU) issued by corporations to attract funds for day-to-day business activities. 1 7. Deposits in foreign banks or at U.S. banks located in foreign countries that are denominated in U.S. dollars rather than foreign currencies. 8. A long term loan to finance the purchase of real property, secured by a lien on that property. 9. Banks attract funds for loans by offering receipts for these types of deposits. They are issued in denominations of $100, 000 or more and can be traded prior to maturity. 10. Municipal bonds are issued by state and local governments to finance capital investment projects. What is the unique characteristic of municipal bonds? 2...
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- Fall '07
- Economics, short term loans