Question

2 The money market is a market which brings together suppliers and demanders of short-term funds where smaller, unlisted securities are traded O where all derivatives are traded that enables suppliers and demanders of long-term funds to make transactions
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Money market is a market which brings together suppliers and demanders of short-term funds

In money market, liquidity is very high as short term securites are bought and sold in a relatively low time frame, generally less than a year. One example of players of money market would be commercial banks, who buys and sells short term securites to fulfill their non-interest bearing reserve requirements.

Add a comment
Know the answer?
Add Answer to:
2 The money market is a market which brings together suppliers and demanders of short-term funds...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Financial markets are forums in which suppliers and demanders of funds can transact business directly. The two key finan...

    Financial markets are forums in which suppliers and demanders of funds can transact business directly. The two key financial markets are the money market and the capital market. Based on this information, what parts of today's environment of financial markets would you take into consideration when advising a manufacturing company. " Why?

  • 4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income...

    4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income securities d. short-term stocks 5. Protective covenants associated with bond agreements: a. are designed to protect the bondholder b. are designed to protect the bond issuer c. are generally disclosed at bond maturity d. are not required but increase the risk of the bond issue 6. Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are...

  • Return on common equity measures profitability per dollar of investment for: a. short-term suppliers of funds...

    Return on common equity measures profitability per dollar of investment for: a. short-term suppliers of funds b. all suppliers of funds c. common stockholders d. all stockholders e. long-term suppliers of funds

  • The money market interest rate paid by corporations that borrow short-term funds in a particular country...

    The money market interest rate paid by corporations that borrow short-term funds in a particular country is typically: A.equal to the rate paid by that country’s government. B. slightly higher than the rate paid by that country’s government. c.mostly influenced by the demand for and supply of long-term funds in that country. d. set by the country’s central bank.  

  • Which of the following is not true? Banks and other financial intermediaries help make the market...

    Which of the following is not true? Banks and other financial intermediaries help make the market for loanable funds fluid O and ease transactions by helping match one person's savings with another person's investment. The market for loanable funds works like any other competitive market with many buyers O and many sellers. The market for loanable funds is comprised of those who want to save the suppliers of funds) and those who want to borrow (the demanders of funds) Where...

  • 2. Types of short-term bonds Short-term debt securities have a maturity of one year or less....

    2. Types of short-term bonds Short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital n borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term d being described Definit Term Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will...

  • 1. Which of the following statements is true? A. Pension funds are like mutual funds that...

    1. Which of the following statements is true? A. Pension funds are like mutual funds that trade on exchanges. B. Life insurance companies typically underwrite corporation's initial public offering of stock. C. Commercial banks are where people usually have their checking and saving accounts. D. Investment banks specialize in mortgage lending. 2. Which of the following statements is true? A. Corn is an example of a physical asset. B. Money market instruments have original maturities greater than 1 year. C....

  • Which of the following money market investments is a short-term debt obligations of the U.S. government?...

    Which of the following money market investments is a short-term debt obligations of the U.S. government? ns O A. certificates of deposit OB. Treasury bills O C. banker's acceptance OD. commercial paper O E. repurchase agreement

  • 1. Which of the following statements about the OTC market is true? A. An OTC market...

    1. Which of the following statements about the OTC market is true? A. An OTC market is an organized exchange where there is a central trading location. B. OTC security transactions are made on the floor of an exchange by traders. C. Securities that are not listed on an organized exchange are bought and sold on the OTC market. D. Securities that are listed on an organized exchange are bought and sold in the OTC market. 2. Which of the...

  • Question 5 1 pts Which statement is NOT true about money market mutual funds. A money...

    Question 5 1 pts Which statement is NOT true about money market mutual funds. A money market fund is a type of mutual fund that invests in high- quality, short-term debt instruments, cash, and cash equivalents. Money market funds should be used as a place to park money temporarily before investing elsewhere or making an anticipated cash outlay; they are not suitable as long-term investments. Though not quite as safe as cash, money market funds are considered extremely low-risk on...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT