Financial Markets and Institutions Backed by the U. S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. these financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. Issued by corporations, these financial instruments fund their long-term financing requirements and have less risk than equity securities. Which of the following instruments are traded in the capital markets? Check all that apply. Commercial paper Common stocks Treasury bills Preferred stocks Certificates of deposit Google Drive The process in which derivatives are used to reduce risk exposure is called 1:42 PM AN