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Business, 17.03.2020 06:30 erika6072

Backed by the U. S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. Issued by corporations, these instruments can have maturities from 1-40 years. The risk depends on the financial strength of the issuing corporation.

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