T-Bill:

A short-dated government security, yielding no interest but issued at a discount on its

redemption price.
Short-term (usually less than one year, typically three months) maturity promissory note issued
by a national (federal) government as a primary instrument for regulating money supply and
raising funds via open market operations. Issued through the country's central bank, T-bills
commonly pay no explicit interest but are sold at a discount, their yield being the difference
between the purchase price and the par-value (also called redemption value).

Negotiable certificate of deposit (CD):

CD is a Short-term (2 to 52 weeks) large denomination ($100,000 minimum) that is issued at a
discount on its par value, or at a fixed interest rate payable at maturity. Negotiable CDs issued
by large banks are freely traded in secondary markets.
Due to their large denominations, NCDs are bought most often by large institutional investors.
Institutions often use these as a way to invest in a low-risk, low-interest security.

Commercial paper:
A short-term unsecured promissory notes issued by companies.
Commercial paper is a money-market security issued (sold) by large corporations to obtain
funds to meet short-term debt obligations (for example, payroll), and is backed only by an
issuing bank or corporation's promise to pay the face amount on the maturity date specified on
the note. Since it is not backed by collateral, only firms with excellent credit ratings from a
recognized credit rating agency will be able to sell their commercial paper at a reasonable price.
Commercial paper is usually sold at a discount from face value, and carries higher interest
repayment rates than bonds. Typically, the longer the maturity on a note, the higher the interest
rate the issuing institution pays.

Banker's Acceptance:
A short-term debt instrument issued by a firm that is guaranteed by a commercial bank. Banker's
acceptances are issued by firms as part of a commercial transaction. These instruments are
similar to T-Bills and are frequently used in money market funds.

A banker's acceptance, or BA, is a promised future payment, or time draft, which is accepted
and guaranteed by a bank and drawn on a deposit at the bank. The banker's acceptance specifies
the amount of money, the date, and the person to which the payment is due. After acceptance,
the draft becomes an unconditional liability of the bank. But the holder of the draft can sell
(exchange) it for cash at a discount to a buyer who is willing to wait until the maturity date for
the funds in the deposit.

Repurchase agreement:
A contract in which the vendor of a security agrees to repurchase it from the buyer at an agreed
price
A repurchase agreement, also known as a repo, currency repo, RP, or sale and repurchase
agreement, is the sale of securities together with an agreement for the seller to buy back the
securities at a later date. The repurchase price should be greater than the original sale price, the
difference effectively representing interest, sometimes called the repo rate. The party that
originally buys the securities effectively acts as a lender. The original seller is effectively acting
as a borrower, using their security as collateral for a secured cash loan at a fixed rate of interest.

Federal funds:
n the United States, federal funds are overnight borrowings between banks and other entities to
maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve
Banks to meet their reserve requirements and to clear financial transactions.
In the United States, federal funds are overnight borrowings between banks and other entities to
maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve
Banks to meet their reserve requirements and to clear financial transactions. Transactions in the
federal funds market enable depository institutions with reserve balances in excess of reserve
requirements to lend reserves to institutions with reserve deficiencies. These loans are usually
made for one day only, that is, "overnight". The interest rate at which these deals are done is
called the federal funds rate. Federal funds are not collateralized; like eurodollars, they are an
unsecured interbank loan.

Eurodollar:
A US dollar held in Europe or elsewhere outside the US
Eurodollars are time deposits denominated in U.S. dollars at banks outside the United States,
and

thus are not under the jurisdiction of the Federal Reserve. Consequently, such deposits are
subject to much less regulation than similar deposits within the U.S., allowing for higher
margins.

Stock:
A share which entitles the holder to a fixed dividend, whose payment takes priority over that of
ordinary share dividends.
A type of security that signifies ownership in a corporation and represents a claim on part of the
corporation's assets and earnings. There are two main types of stock: common and preferred.
Mortgage:
Conveys (a property) to a creditor as security on a loan
A debt instrument, secured by the collateral of specified real estate property, that the borrower is
obliged to pay back with a predetermined set of payments.

Corporate bond:
A corporate bond is a bond issued by a corporation. It is a bond that a corporation issues to raise
money effectively in order to expand its business. The term is usually applied to longer-term
debt instruments, generally with a maturity date falling at least a year after their issue
date.Corporate bonds are debt instruments created by companies for the purpose of raising
capital. They are called fixed-income securities because they pay a specified amount of interest
on a regular basis.

Government securities:
A government security is a bond or other type of debt obligation that is issued by a government
with a promise of repayment upon the security's maturity date. Government securities are

usually considered low-risk investments because they are backed by the taxing power of a
government.
U.S. government Agency securities:
A security, usually a bond, issued by a U.S. government-sponsored agency. The offerings of
these agencies are backed by the government, but not guaranteed by the government since the
agencies are private entities. Such agencies have been set up in order to allow certain groups of
people to access low cost financing e.g. students and home buyers. Some prominent issuers of
agency securities are Student Loan Marketing Association (Sallie Mae), Federal National
Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie
Mac). Agency securities are usually exempt from state and local taxes, but not federal tax. also
called agency security

State and government bonds:

A debt security issued by a government to support government spending, most often issued in
the country's domestic currency. Government debt is money owed by any level of government
and is backed by the full faith of the government.

Consumer and Business Lending:

A plan initiated to aid in the government's goal of correcting the credit crisis by working on the
secondary lending markets.
A debt-based funding arrangement that a business can set up with a financial institution. The
proceeds of commercial loans may be used to fund large capital expenditures and/or operations
that a business may otherwise be unable to afford. Due to expensive upfront costs and
regulation related hurdles, smaller businesses do not typically have direct access to the debt and
equity markets for financing purposes. Therefore, they must rely on financial institutions to
meet their financing needs.