 |  Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e Peter Rose,
Texas A & M University
Money Market Instruments: Commercial Paper, Federal Agency Securities, Acceptances, and Eurocurrency Deposits
Chapter Objectives
| You will discover the important role that large corporations and government
agencies play in the domestic U.S. money market and that banks play in the
international money market through the issuance of bankers’ acceptances and
Eurodollar deposits. |
| | | | You will explore the nature and characteristics of one of the oldest of all money
market instruments—commercial paper. |
| | | | You will learn how federal agencies, by borrowing many of their outside funds in
the money market, aid several different sectors of the economy (including
agriculture, home buyers, and small businesses) to find low-cost credit. |
| | | | You will discover the trend toward internationalization of the money market,
which now reaches around the globe, helping to efficiently allocate capital and
other resources nearly everywhere on the planet. |
| | | | You will understand how bankers’ acceptances and Eurodeposits are employed,
not only to provide credit within the borders of a single nation, but also to aid
international trade by flowing credit across national borders. |
| | | | You will see how transfers of money from spending unit to spending unit across
international boundaries impact the economy of a particular nation. |
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2003 McGraw-Hill Higher Education