Which of the following is a nickname for an agency associated with the mortgage markets?
The Government National Mortgage Association is a federal corporation that guarantees principal and interest payments on mortgage-backed securities issued by approved lenders. The association is commonly known as Ginnie Mae or GNMA and is part of the U.S. Department of Housing and Urban Development.
What are municipal bonds quizlet?
A municipal bond is. a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools. Crowding out occurs when investment declines because. a budget deficit makes interest rates rise.
Which of the following securities is a money market instrument?
Money markets include markets for such instruments as bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos).
What are Ginnie Maes?
The Government National Mortgage Association (or Ginnie Mae) is a government corporation within the U.S. Department of Housing and Urban Development (HUD). It was established in 1968 when Fannie Mae was privatized. Its mission is to expand funding for mortgages that are insured or guaranteed by other federal agencies.
Are Freddie Mac and PennyMac the same?
PLS is a seller/servicer for the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), each of which is a government-sponsored enterprise (“GSE”). … PCM manages PennyMac Mortgage Investment Trust (NYSE: PMT), a mortgage real estate investment trust.
Which of the following securities is a money market instrument quizlet?
Which of the following securities are money market instruments? A money market instrument is a debt that will mature in 1 year or less. Treasury Bills have a maximum 12 month maturity, so they are a money market instrument. Commercial paper has a maximum maturity of 9 months, and so it is a money market instrument.
Which of the following is true of money market securities?
Which of the following is true about the distinction between money market and capital market? … Money market deals long term funds and capital market deals short-term funds. 2. Money market deals in securities like treasury bills, commercial papers etc and capital market deals with securities like shares, debentures etc.
Are money market instruments securities?
Money market instruments are securities that provide businesses, banks, and the government with large amounts of low-cost capital for a short time. The period is overnight or a few days, weeks, or even months, but always less than a year. The financial markets meet longer-term cash needs.
What are money market securities?
Money market securities are often considered a good place to invest funds that are needed in a shorter time period—usually one year or less. Money market instruments include bankers’ acceptances, certificates of deposit and commercial paper. … Some combination of these products makes up a money market fund.
Which of the following are characteristics of money market securities?
Features of Money Market Instruments
- High Liquidity. One of the key features of these financial assets is high liquidity offered by them. …
- Secure Investment. These financial instruments are one of the most secure investment avenues available in the market. …
- Fixed returns. …
- Fixed returns.
Which of the following money market securities is the most liquid?
U. S. Treasury bills are considered the most liquid security in the money market.
What is equity securities in accounting?
Equity securities represent ownership claims on a company’s net assets. As an asset class, equity plays a fundamental role in investment analysis and portfolio management because it represents a significant portion of many individual and institutional investment portfolios.
What is equity bond and money market?
Equity funds are stocks or their equivalents. Fixed income funds are government treasuries or corporate bonds. Money market funds are short-term investments in high-quality debt instruments from the government, banks, or corporations, such as corporate AAA bonds.
Is money market and debt market same?
The money market is a subsection of the fixed income market. … In reality, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year).
Which best describes an investor’s primary goal?
Which term refers to the possibility of an investor losing some or all of an investment? … Which best describes an investor’s primary goal? to earn a profit. What is one way in which bonds do not generate income for investors?
Are bonds debt or equity?
Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages. The equity market (often referred to as the stock market) is the market for trading equity instruments.
How do you record equity investments?
Equity method investments are recorded as assets on the balance sheet at their initial cost and adjusted each reporting period by the investor through the income statement and/or other comprehensive income ( OCI ) in the equity section of the balance sheet.
Which statement best describes how an investor makes money?
An investor makes money by raising capital. An investor makes money by being repaid for the principal.
Which best describes what market index does?
Which best describes what a market index does? An index measures market performance. Once stocks are on the market, which best explains how their prices are set? Prices fluctuate on the basis of demand.
How does an investor make money from an equity investment?
The investor can make profits by purchasing shares at a discounted price and selling them at a higher market price.
What best describes the role that government and business play in investments?
Which best describes the role that government and business play in investments? … They both invest money to earn a profit.
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