Money Market

Short term investments (one day to one year in term), obligations such treasury bills, commercial paper and bonds under one year to maturity. Money market funds are funds that invest in these securities.

Treasury Bills

A Treasury Bill (T-Bill) is a short-term government debt obligation backed by the Federal government with a maturity of one year or less.

Commercial paper

Commercial paper are securities that are unsecured obligations issued by a corporation to finance its short-term credit needs, such as accounts receivable and inventory. Maturities typically range from 2 to 270 days. Commercial paper is available in a wide range of denominations, can be either discounted or interest-bearing, and usually has a limited secondary market.

Deposits

In Canada they’re called Guaranteed Investment Certificates (GICs). In the US, they’re called Certificates of Deposit (CDs). These are short or medium-term, interest-bearing debt instruments. Deposits offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate’s maturity. Money removed before maturity may be subject to a penalty.