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Trading takes place between banks in the "money centres" ( New York and London primarily, also Chicago, Frankfurt, Paris, Singapore, Hong Kong, TokyoTokyo (; Tokyo lit. eastern capital) is the capital of Japan as well as the most populous conurbation in Japan, and the world's largest metropolitan area by population with 33,750,000 people living within its urban influence. A little more than 12 million, Toronto, SydneyThis is about the city of Sydney in Australia. For other meanings, see Sydney (disambiguation), or Sidney. Sydney Opera House Sydney is the capital city of the Australian state of New South Wales and Australia's largest and oldest city, founded in 1788.).
Bankers Acceptance . A draft or bill of exchange accepted by a bank to guarantee payment of the bill.
Certificate of Deposit. A time depositIs a money deposit at a bank that can can not be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for antoher term. The longer the term the better the yield on the money. A Certificate of deposi with a specific maturity date shown on a certificate; large-denomination certificates of deposits can be sold before maturity.
Commercial Paper . An unsecured promissory note with a fixed maturity of one to 270 days; usually it is sold at a discount from face value.
Eurodollar Deposit . Dollar deposits in a U.S. bank branch or a foreign bank located outside the United States.
Federal Agency Short-Term Securities . Short-term securities issued by federally sponsored agencies such as the Farm Credit System , the Federal Home Loan Banks and the Federal National Mortgage AssociationThe United States Federal Government created the Federal National Mortgage Association (FNMA—aka Fannie Mae in 1938 to establish a secondary market for mortgages insured by the Federal Housing Administration (FHA). Fannie Mae buys mortgages on the seconda.
Federal FundsFederal Funds transactions redistribute bank reserves. Federal funds are reserve balances at Federal Reserve Banks that can be transferred between depository institutions within the same business day. Banks keep reserves at Federal Reserve Banks to meet t. Interest-bearing deposits held by banks and other depository institutions at the Federal ReserveThe Federal Reserve System (also known as the Federal Reserve or simply "The Fed") is the central bank of the United States. It was created by the United States Congress and enacted on December 23, 1913, when President Woodrow Wilson signed the Owen-Glass; these are immediately available funds that institutions borrow or lend, usually on an overnight basis. They are lent for the federal funds rateThe federal funds rate is the interest rate at which depository institutions lend balances ( federal funds) at the Federal Reserve to other depository institutions overnight. It is the primary means by which the Federal Reserve implements monetary policy..
Municipal Notes . Short-term notes issued by municipalities in anticipation of tax receipts or other revenues.
Repurchase Agreements. Short-term loans—normally for less than two weeks and frequently for one day—arranged by selling securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
Treasury Bills . Short-term debt obligations of the U.S. Treasury that are issued to mature in 3 to 12 months.