Chapter 7: Fiduciary Flashcards
1
Q
C.D. Certificate Deposits
A
$1 mil denominations; active in secondary market; last 14 days to 6 months
2
Q
Money market fund
A
Low risk sht term cash equivalent; cd’s, commercial paper, repurchase agreements, gov’t securities.
3
Q
Commercial paper
A
Money market investment- max maturity of 270 days; offered by corporations to finance accounts receivable.
4
Q
Treasury bills
A
T-bills- sht term(1year or less) issued by gov’t, minimum $10,000; sold at auction at discount of face value.
5
Q
The Federal reserve
A
the fed- buys and sells money market instrumented to reduce or increase the amount of cash available in the market place.
6
Q
A fiduciary
A
Loyal to client, the objectives are basis for investment; must take into account objectives and situation. Has control of clients account
