Governments need money to finance their operations and to keep running their working machinery, whenever they feel themselves short of money; they make an arrangement to raise some amount from the private sector, treasury bills are issued to the investors, which are short term usually for a period less than one year. These bills bear a fixed rate of return on the terms of the bill and are to get mature within the time span of less than one year. Treasury bills can be defined in the following way:A negotiable debt obligation issued by theU.S. government and backed by its full faith and credit, having maturity of one year or less. U.S. TreasuryBills are exempt from state and local taxes. These securities do not pay coupon rate of interest, and the interest earned is estimated by taking the difference between the price paid and the par value of the bond, and calculating that rate of return on an annual basis. TreasuryBills are considered the safest securities available to the U.S.investor, and so the yields on these securities are considered the risk-free Teo return. These are also calledBillorT-BillorTreasury bill.This definition describes the true meaning of the treasury bills issued by the Unites States government. Treasury bills are the most trusted and respectable bills among the investors because these are backed up by the government itself. Investors have full confidence that their investment is safe and that they are going to get the fixed amount as a return on the investment.
economy. There were several strategies introduced by policy makers to combat such occurrences. After all, no economy is safe from depression and market forces continue to follow cyclical trends. The discussion below will tackle some of the important aspects related to depression.
Mutual Funds Introduction With the increasing risk of the financial markets brought on by the American recession and the European Sovereign Debt Crisis investors have increasingly looked to safe havens for their money. One of the most prominent and conservative means of investment diversification has been the mutual fund.
Financial intermediaries in financial markets are of essence to both the borrowers and the lenders, and therefore, their role in financial markets cannot be underestimated (Besley and Brigham 2011). In this essay, I will discuss the importance of financial intermediaries in financial markets by identifying the roles these play in financial markets, including both the positive and negative ways.
Walmart is basically the largest company in the world within the retail industry. This company has over the years been able to actively participate in the financial market through some of the securities that it engages in for trade. The major impact is that this company has played an integral role in enhancing the role of financial markets in regards to the creation of economic wealth in the United States (Pilbeam, 2002).
Money market mutual funds aim at limiting losses incurred because of market, liquidity, and credit risks. They preserve the principal in the investment and bring in modest dividends. Though there is fluctuation in the interest rates, the Net Asset Value of the funds remains at a $1 per share constant.
The United States of America uses the monetary unit of a Dollar. The United States Treasury prints money bills for distribution to the banks in form of bank reserves. The banking system provides the platform for reserving money for distribution to the public.
Debt ceiling does not directly mange the national deficit. Debt ceiling crisis of 2011 was significantly debated topic in the US Congress. The matter was an important subject of substantial political debate in the
Throughout the history of the United States, there has been a supremacy battle between the president and the Congress. There have been two presidential impeachment attempts, for Andrew Johnson and Bill Clinton in 1863 and 1999 respectively. Richard Nixon had to resign in 1974 in fear of impeachment due to his controversial governance.
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Governments need money to finance their operations and to keep running their working machinery,whenever they feel themselves short of money;they make an arrangement to raise some amount from the private sector,treasury bills are issued to the investors,which are short term usually for a period less than one year…