One-Day Certificate


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.

BREAKING DOWN '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.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Federal Reserve Bank

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  3. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  4. Federal Reserve System - FRS

    The central bank of the United States. The Fed, as it is commonly ...
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