One-Day Certificate

AAA

DEFINITION of 'One-Day Certificate'

A type of temporary financing used by the U.S. Treasury. One-day certificates are interest bearing and are used when the Treasury must borrow from the Federal Reserve System. These certificates are a type of Special Certificate that is issued to the Federal Reserve Bank of New York.

INVESTOPEDIA EXPLAINS 'One-Day Certificate'

One-day certificates have not been issued since June of 1979. Legislation prohibits the Treasury from borrowing more than $5 billion directly from the Federal Reserve and requires the approval of at least five of the seven governors of the Federal Reserve Board.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Bank

    A financial institution licensed as a receiver of deposits. There ...
  3. Federal Reserve System - FRS

    The central bank of the United States. The Fed, as it is commonly ...
  4. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  5. Interest

    1. The charge for the privilege of borrowing money, typically ...
  6. Treasury Direct

    The online market where investors can purchase federal government ...
Related Articles
  1. The Treasury And The Federal Reserve
    Bonds & Fixed Income

    The Treasury And The Federal Reserve

  2. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  3. When The Federal Reserve Intervenes ...
    Economics

    When The Federal Reserve Intervenes ...

  4. Demystification Of Bank Accounts
    Options & Futures

    Demystification Of Bank Accounts

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center