Glossary Games- Kidwell; Financial Markets, Institutions and Money

Davidson; Management - 3rd Australasian Edition

1.	An unsecured, short-term promissory note issued by a large creditworthy business or financial institution Answer:

2.	A financial instrument issued by an importer's bank that obligates the bank to pay the exporter (or other designated beneficiary) a specified amount of money once certain conditions are fulfilled Answer:

3.	Bonds issued by state and territory borrowing authorities Answer:

4.	Commercial paper and negotiable CDs Answer:

5.	The reverse (lending) side of a repo Answer:

6.	A draft drawn on a bank by a corporation to pay for merchandise. The draft promises payment of a certain sum of money to its holder at some future date. In effect, the bank substitutes its credit standing for that of the issuing corporation. Answer:

7.	Another name for the spot market, which involves the exchange of securities or other financial claims for immediate payment Answer:

8.	Promissory notes in denominations of $100 000 or more, which can be resold in secondary markets and are issued by banks rather than large corporations Answer:

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