Various financial instruments usually serve one of two disti…

Various financial instruments usually serve one of two distinct purposes: to store value or to transfer risk. Name a financial instrument used for each purpose. A _______________ is a financial instrument that stores value, while ________________  is a financial instrument that transfers risk.

For the following instruments below, use the criteria for va…

For the following instruments below, use the criteria for valuing a financial instrument to choose the one with the highest value: a. A U.S. government Treasury bill that pays $5,000 in three months or commercial paper issued by a private corporation that pays $5,000 in three months. The _________________ is more valuable because the payment is ____________ likely to be made.