F208. Open Market Paper (Commercial Paper)

Federal Reserve definition for F208 flow of funds table

Open market paper comprises commercial paper and bankers acceptances.

Commercial Paper

Commercial paper consists of short-term promissory notes issued by financial and nonfinancial borrowers.

Bankers Acceptance

A bankers acceptance is a draft or bill drawn on and accepted by a banking institution (the "accepting bank") or its agent for payment by that institution on a future date specified in the instrument (most commonly about three months later).

Bankers acceptances are often used in financing international trade.

In the flow of funds accounts, they are treated as liabilities of U.S.-chartered commercial banks and of foreign banking offices in the U.S.


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