Series 50: Exercise

Exercise

Match the term with its description

1. 1. _____ Guaranteed investment contract (GIC)
2. 2. _____ Certificate of deposit (CD)
3. 3. _____ Commercial paper
4. 4. _____ T-bill
5. 5. _____ Banker’s acceptance
6. A. Is considered safe, can have a term up to 270 days, and is generally issued in lots of $100,000
7. B. Specifies that, for example, a life insurance company will repay a principal balance with interest payments
8. C. Is issued at a discount to par, pays no interest, and is redeemed at maturity for par value