Municipal Notes are debt securities issued by state and local governments. The notes are interest bearing with maturities that range from a month to more than a year. The interest from these notes is exempt from federal taxation and usually exempt from state income tax. There are also variable rate CDs. Commercial Paper is issued by large corporations as an alternative to securing short-term bank loans.
Commercial paper is an unsecured promissory note and is usually issued on a discount basis.
Most of the paper issued is 30 days in maturity although paper can be issued up to 270 days. Repurchase Agreements are contractual agreements between two parties to buy and sell U.S. government securities at particular points in time. Repos are usually used by dealers. The dealer will sell his inventory to the other party and will agree to repurchase at a fixed price on a certain date. Bankers' Acceptances have traditionally arisen from international trade.