Financial instruments

Financial instruments are assets that have a monetary value or recond a monetary transaction. To coordinate the exchange of capital betimeen borrowers and lenders, financial instruments trade in the financial markets. These finuncial instruments can be categorised on the basis of their issuers, maturity, risk, and other factors.

Identify the financial instruments based on the following descrigtions.

Description

Financial Instrument

Backed by the U$.$S$.$ government, these financial instruments are whort$-$term debt obligations with a maturity of less than one year. They are considered risk$-$free investments.

Issued by money$-$centered financial firms, these short$-$ or medium$-$term insured debt instruments pay higher interest than a regular savings account. They are low$-$risk instruments and have low returns.

These financial instruments are investment pools that buy such short$-$term debt $$ instruments as Treasury bills $($T$-$bills$),$ certificates of deposit $($CDS$),$ and commercial paper They can be easily liquidated.

These financial instruments are contractual agreements that give one party a long$-$term agreement to use an asset, by providing regular payments.