FI 457 Lecture Notes - Lecture 30: United States Treasury Security, Commercial Paper, Life Insurance
Document Summary
Financial markets promote economic efficiency by producing an efficient allocation of capital, which increases _________. underwrite. In a primary market transaction, investment banks ______ securities. secondary. Brokers and dealers work in (primary/secondary) markets to connect buyers and sellers of securities. Short (short/long) -term maturities are the least risky, usually highly liquid, stable principle value, and low yield. U. s. treasury bills, negotiable bank certificates of deposits, commercial paper, and federal funds and security repurchase agreements are all examples of (short/long)-term bonds. Long (short/long)-term maturities are the most risky, least liquid, volatile principle value, and higher yield. Corporate stocks, residential mortgages, corporate bonds, u. s. government securities, state and local government bonds, bank commercial loans, consumer loans, and commercial and farm mortgages are all examples of (short/long)-term bonds. grown; less. Foreign financial markets have _____ dramatically in recent decades, making. Us markets ______ dominant in the world and providing substantial funds to.
