Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions. Financial Instrument Description Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk free Investments, Issued by corporations, these unsecured debt instruments are used to fund corporate "short-term financing requirements. If owed by a financially strong company, they have Tess risk These financial instruments are investment pools that buy such short term debt Inutruments as Treasury bills (T-bille) certificates of deposit (CO), and commercial paper. They can be easily liquidated Issued by corporations, these financial instruments find their long-term financino requirements and have less risk than equity securities requirements and have less risk than equity securities. Which of the following are money market instruments? Check all that apply. Certificates of deposit Long-term bank loans Commercial paper Corporate bonds Treasury bills The process in which derivatives are used to reduce risk exposure is called