An overview of the financial system - Financial institutions - Money markets instrument ST

3 important questions on An overview of the financial system - Financial institutions - Money markets instrument ST

Negotiable bank certificates of deposit (CD): explain

Debt instrument sold by a bank to depositors that pays annual interest on given amount (min100 000$) and pays back the value at maturity

What are Purchase agreements (repos)?

Short-term loans; where government security (typically treasury bill) serves as collateral.

What are Federal funds?

Typically overnight loans between banks

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