4 what are the major components of the money market
Money markets include markets for such instruments as bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos). It is a market for short-term financial products that are close to money substitutes. The securities . Answer (1 of 10): Various characteristics of money market are as discussed below: – 1. Money market accounts blend some of the abilities of both c. Many people are familiar with checking and saving accounts, but money market accounts are an additional method of storing money with a bank. T-bills), certificates of deposit (CDs), commercial paper. The money market is composed of several types of securities including short-term Treasuries (e.g. ii. v. The market for the acceptance of trade bills. The main operators in this market are the ‘Acceptance houses’ and the commercial banks. i. i. Demerits. iv. Promote stock exchange transactions. Promotes the operations of discount houses. Earn interest by quick lending of idle cash. ii. iii. The money can be taken back when needed. Merits i. Money Market i. The rate in this market is the “call money rate.” iv. ADVERTISEMENTS: ii. The market for extremely short period loans. Money is lent mainly to the bill brokers and stock exchange dealers. Money at call and short notice iii. v. The rate is determined by the demand and supply of funds. Money market securities include Treasury bills (T-bills), certificates of deposit (CDs), repos and commercial paper. The money market is a financial market that . Define Money Components. Since the securities being traded are. These include treasury bills, certificates of deposit, commercial paper, repurchase agreements, etc. Will a money market account give you the best retu. If you’ve got money to invest and you’re considering a money market account, you need to know about current money market rates and other key details.