Question

define

a. Money Market

b. Discount Rate Yield

c. Investment return Yield

d. Commercial Paper

e. Banker’s acceptance

f. Eurodollar accounts

Answer 1

Money Market :

It is a type of financial market.This markets are used by government and corporate entities as a means for borrowing and lending in the short term, usually for assets being held for up to a year.

Discount Rate Yield:

Discount yield is a measure of a bond's rate of return to an investor, stated as a percentage, and discount yield is used to calculate the yield on municipal notes, commercial paper and treasury bills sold at a discount. Discount yield is calculated as (par value - purchase price)[/par value] * 360/days to maturity, and the formula uses a 30-day month and 360-day year to simplify the calculation.

Investment Return Yield :

Investment yield can be simply understood as annual return on investment in percentage terms

i.e annual return/investment value

Commercial Paper :

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days.

Banker's Acceptance :

A banker's acceptance, 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 whom the payment is due

Eurodollar Accounts :

The term eurodollar refers to U.S. dollar-denominated deposits at foreign banks or at the overseas branches of American banks. By being located outside the United States, eurodollars escape regulation by the Federal Reserve Board, including reserve requirements.