MONEY MARKET INSTRUMENTS

Feature of Deposit or straight palcements (DEPOs)

• A negotiable piece of paper that functions like a post-dated cheque.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held untilmaturity, at which time they can be withdrawn andinterestpaid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.

Feature of Repurchase Placement Orders (REPOs)

• A relatively safe form of payment for large transactions.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held untilmaturity, at which time they can be withdrawn andinterestpaid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.

Feature of Repurchase Placement Orders (REPOs)

• A negotiable piece of paper that functions like a post-dated cheque.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held untilmaturity, at which time they can be withdrawn andinterestpaid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.

Feature of Malaysia Government Security & Treasury Bills (MGS & MGTBs)

• A negotiable piece of paper that functions like a post-dated cheque.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held untilmaturity, at which time they can be withdrawn andinterestpaid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.

Feature of Negotiable Instrument Deposits (NIDs)

• A relatively safe form of payment for large transactions.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held until maturity, at which time they can be withdrawn and interest paid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.

Feature of Banker Acceptance (BAs)

• A negotiable piece of paper that functions like a post-dated cheque.

• To raise long-term funds from the domestic capital market to finance thegovernment‘sdevelopment expenditure.

• To be held until maturity, at which time they can be withdrawn and interest paid.

• Can be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.

• Used to raise short-term capital and as a common tool of central bankopen market operations.