Chapter 5 - Money Markets

Whydoweneedmoneymarkets

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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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This document was uploaded on 03/14/2014.

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