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Use the following table to determine what type of financial institution engages in each of the given money market activities. Activity in Money Markets Finance
Use the following table to determine what type of financial institution engages in each of the given money market activities.
Activity in Money Markets | Finance companies | Commercial banks and savings institutions | Money market mutual funds | Insurance companies | Pension funds | |
---|---|---|---|---|---|---|
Issue commercial paper. | ||||||
Create bankers acceptances. | ||||||
Use proceeds from shares sold to invest in repurchase agreements. | ||||||
Invest in money market securities to maintain liquidity in their investment portfolios. |
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