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The money market is used to: transfer large amounts of money; determine short term interest rates; allow governments to raise funds; and help to implement monetary policy.

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What is the relationship between interest rates and the supply and demand graph of the money market?

In the money market, interest rates and the supply and demand of money are inversely related. When interest rates are high, the demand for money decreases, leading to a surplus of money in the market. Conversely, when interest rates are low, the demand for money increases, causing a shortage of money in the market. This relationship is depicted on the supply and demand graph of the money market.


A market in which the money of one nation is exchanged for the money of another nation is a?

Foreign exchange market


What is Eurocurrency market?

Euro currency is the time deposit of money in an international bank located in a country different from the country that issued the currency. However the Eurocurrency market is the money market for borrowing or lending currencies that are in the form of deposits in an international bank and is used to execute domestic transaction.


What is counterfeit money?

fake money.


Inter relation between money market and capital market?

Relationship between Money Market and Capital Market:a) Capital market is a market for financial assets which have a long or indefinite maturity and money market is the mechanism whereby funds are obtained for short periods of time (from one day to one year).b) Two markets are inter-related. They will buy treasury bills at relative.c) In Money Market, short-term funds are used whereas the Capital Market deals in long term fund required.d) Capital Market is not as sensitive to change in demand and supply as are the money market components.e) Change of interest rate in both market affect each other.f) Money markets facilitate the sale of short-term securities, while capital markets facilitate the sale/buy of long term securities.Prepared byMd. Al-mamun,MBA, 26th Batch, ID: 2023Prime UniversityBangladesh

Related Questions

What is the money market used for?

The money market is used for one to invest money to make more money. The money market is what helps the economy to grow and prosper by one being interested to invest one's income.


What is the market rate of interest formula used to calculate the cost of borrowing money?

The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.


Who are the capital market and money market operators?

who are the operators of money market and capital market


What are the cnstituuansof money market?

What are the cnstituuansof money market


Is dealer commercial paper money market or capital market?

Money Market


Money pooled from small investors and used to purchase government or corporate bonds?

Money Market Mutual Fund.


How black money stored?

Black money is something used in India. It is what money that is earned on the black market is called. This money is often stored in Swiss banks.


Can money market accounts be used for savings?

Yes, money Market Accounts have often been used for savings. In recent years, they have been paying virtually no interest, so other forms of savings may be more advantageous.


Components of money market?

1. call money market 2. acceptance market 3. bill market 4. collateral loan market


Where can one compare money market accounts?

A Money Market Account is a financial account that pays interest based on current interest rates in the money markets. Money Supermarket, Nationwide, Bank Rate and Bank of America can all be used to compare accounts.


Shortage of liquidity in money market?

is the drain of excess liquidity from the money market


The most used instrument for controlling week to week changes in the money supply is?

Open market operations is the most used instrument for controlling changes in the money supply.