Unformatted text preview: ment 1. Largest borrower
Issue Tbills Federal reserve system Agent for Treasury department distributing of government securities 3.
3. Commercial banks 4. Businesses 5. Lenders
Holding highest percentage of Treasury Bills Lenders and borrowers Issue commercial papers Investment and securities firms Buy and sell securities “make a market” by keeping inventory 6.
6. Individuals Through money market mutual funds Money market securities
Money market securities
Treasury bills (Tbills)
► Issue by government
► Tbills do not pay interest but offer at a discount from par
► Zero default risk and...
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