 Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e Peter Rose,
Texas A & M University
Money Market Instruments: Treasury Bills, Repurchase Agreements, Federal Funds and Bank CDs
Chapter Objectives
| You will examine the characteristics of Treasury bills and the workings of the
government securities market. |
 | | | | You will see how Treasury bills (as well as other government securities) are
auctioned off and how their rate or return (yield) is determined. |
| | | | You will explore the reasons why security dealers are so important to the
functioning of the money market and how these dealers raise money to carry on
their daily operations. |
| | | | You will discover two of the most important ways leading banks borrow and lend
funds in the money market—through federal funds trading and the issuance of CDs. |
| | | | You will see what significant changes the managerial strategy known as liability
management has made in bank performance and practice in recent years. |
| 
2003 McGraw-Hill Higher Education