Describe who issues each of the following money market instruments:

a. Treasury bills

b. Certificates of deposit

c. Commercial paper

d. Repurchase agreement e. Fed funds

Any location or system that allows buyers and sellers to trade financial assets such as bonds, shares, international currencies, and derivatives is referred to as a financial market.

(a) Treasury Bill:Treasury bills are short-term debt instruments issued by the Indian government. They come in three tenors: 91 days, 182 days, and 364 days. Treasury bills are interest-free securities with no coupon. They are issued by Federal Reserve.

(b) Certificates of Deposits: A Certificate of Deposit (CD) is a dematerialized money market instrument issued in exchange for funds placed in a bank for a set length of time. It is issued by the banks.

(c) Commercial Paper: Commercial paper is a bearer-issued unsecured promise to pay a specified sum on a specified maturity date. It is issued by companies.

(d) Repurchase Agreement: A repurchase agreement (repo) is a type of short-term financing for government securities dealers. It is issued by dealers of government securities.

(e) Fed Fund: Fed funds are surplus reserves deposited at regional Federal Reserve banks by commercial banks and other financial institutions; these funds can subsequently be lent to other market participants with insufficient cash on hand to meet their lending and reserve needs. They are issued by banks.