Investment Alternatives

All the investment alternatives can be categorized into 2 categories ? real(a) AssetsThese argon the physical or identifiable assets such as land, equipments, patents, gold etc. These tend to be most loving during the periods of high inflation. Financial AssetsThese ar the indirect claims to the real assets. Eg. Stocks, bonds, camber deposits etc. These can further be sub-divided into 2 categories ? develop InvestmentsThese are investments where you take actual direct ownership of the assets. verifying InvestmentsThese are investments where you have indirect ownership, such as shared currency, ETFs, and REITsMoney mart InstrumentsThe money market is comp mug upd of high quality, short, large epithet debt instruments. following are the types of money market instruments ?Treasury BillsTreasury bills are utilise to generate short-term liquidity for the U.S. government. These are sanction by the ? beat faith and credit? of the U.S. government. They are issued with legitim ate maturities of 4 weeks, 13 weeks, 26 weeks and 52-weeks. They do not pass interest, rather they are sold at a brush aside to flavor value and are redeemed at due date for their full face value. The face value of T-bills is $1,000 and multiples thereof. Short-term MunicipalsCities, counties, and states totally frequently have a need for short-term notes to abide for liquidity needs. They can issue securities that are resembling to T-bills called outlook notes (in anticipation of some revenue, usually taxes). The advantage of these securities is that the income they provide is unthaw of federal taxation. The disadvantage is that they are backed sole(prenominal) by the taxing authority of the district that issues them. For this reason, they are not as safe as T-bills.

Commercial PaperCommercial paper (CP) is genuinely high-quality, unsecured, short-term corporate debt. CP with maturities less than 9 months are assuage from mho registration. Most of the CPs mature in 30 days... Federal funds rate as of June 24, 2009 0.21% (effective) Commercial Paper, non pecuniary 3 months as of June 24, 2009 0.26% CD unessential market 3 months, as of June 24, 2009 -0.38% T-Bills secondary market 3 months as of June 24, 2009- 0.19% The in a higher place mentioned judge are not similar because Fed promotes scotch stability by working to keep interest rates low in recessions and letting interest rates rise in periods of rapid economic expansion to control inflation. If you necessity to get a full essay, order it on our website: OrderEssay.net

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