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The definition of each world. 1. Bond-equivalent yield. 2. Asset-backed commercial paper. 3. Federal Reserve Bank....

The definition of each world.

1. Bond-equivalent yield.

2. Asset-backed commercial paper.

3. Federal Reserve Bank.

4. Federal Reserve System.

5. Federal funds rate.

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Answer #1

1. Bond-equivalent yield-It helps investors to ascertain the annual yield from a bond being sold at a discount. In other words, it allows comparison of fixed income securities whose payment are not annual to be compared with securities with annual yields.

2. Asset-backed commercial paper- It is a short term debt that is backed by collateral. It is usually issued by corporations with low credit ratings.

3. Federal Reserve Bank- It is a regional bank of the Federal Reserve System (Central banking system in US). 12 Regional banks currently exists in US.

4. Federal Reserve System- It is the central banking system of the US. It was constituted to alleviate financial crisis in 1913 after a series of financial panics.

5. Federal funds rate- it is the interest rate at which depository institutions (Banks and others) lend reserve balances to other institutions overnight without collateral.

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