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Unformatted text preview: nflation is higher 1) Issued by agencies of the Federal Government or government‐sponsored agencies 2) Often associated with mortgage programs 3) Often known by nicknames: Ginnie Mae, Fannie Mae and Freddie Mac 1) An agreement between a borrower and lender to sell and then repurchase US government securities. 2) The repurchase price is slightly greater than the selling price effectively making this a short‐term loan. 1) A note where a bank promises to pay a specific amount at a specified date. 2)The holder can sell to others (they are negotiable) 3) Generally used in international trade as a way to guarantee payment. A short‐ term promissory note, generally issued by large companies, often by financial companies. 1) Short‐term (maturity of a year or less) 2) Highly liquid 3) Relatively low risk 4) Relatively low return Money market securities are used by investors as a safe and liquid place to store wealth. Generally not used for long‐run investing. To connect the suppliers and deman...
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This document was uploaded on 03/05/2014 for the course FIN 352 at CSU Northridge.
- Spring '14