Unformatted text preview: ature in one year or less
4. They have an active secondary market Why do we need money markets? Why do we need money markets? ► Subject to less regulations and costs
► Cost advantage in providing shortterm funds The purpose of the money market
The purpose of the money market
► To “warehouse” surplus funds ► To provide lowcost funds to firms, and government ► To overcome cash inflow and outflow problems Participants in money market
Participants in money market
1. Treasury depart...
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