MONEY MARKETS 135

6-1 Money Market Securities, 135 6-1a Treasury Bills, 136 6-1b Treasury Bill Auction, 138 6-1c Commercial Paper, 139 6-1d Negotiable Certificates of Deposit, 142 6-1e Repurchase Agreements, 143

Using the Wall Street Journal: Key Interest Rates, 144

6-1f Federal Funds, 145 6-1g Banker’s Acceptances, 146

6-2 Institutional Use of Money Markets, 147

Contents xi

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6-3 Valuation of Money Market Securities, 149 6-3a Impact of Changes in Credit Risk, 150 6-3b Interest Rate Risk, 153

6-4 Globalization of Money Markets, 154 6-4a Eurodollar Securities, 155 6-4b International Interbank Market, 156 6-4c Performance of Foreign Money Market Securities, 157