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Money Markets 1. Makes a financial contribution: It lends short-term money to public and commercial entities in need of working capital. Banking institutions, thrift institutions,
Money Markets 1. Makes a financial contribution: It lends short-term money to public and commercial entities in need of working capital. Banking institutions, thrift institutions, brokers, and acceptability houses discount trading bills. As a result, the money market contributes to the growth of business, industries, and trade both inside and outside of any country. 2. Profitable Employ of Surplus Cash: It allows banks and other financial organizations to productively use excess money for a limited time. Commercial financial institutions, as well as big non-financial businesses, states, and municipal governments, are among these organizations. 3. Demand and Supply of Money are in Balance: The money market takes the supply and demand of loanable funds inside the marketplace to a point of equilibrium. It accomplishes this by channeling savings into investment vehicles. It also contributes to resource distribution that is more reasonable. 4. Economy in Use of Cash: A money market helps lower the usage of cash since it trades in near-money assets rather than money itself. As a result, it provides a simple and secure method of transferring cash from one location to another, greatly assisting trade and industry. The London Interbank Offered Rate (Libor) is a term that refers to
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