answersLogoWhite

0

The need for the money market is driven by the needs of major players to get the best deal for the money they have to invest or need to borrow. The money market sets rates based on the supply and demand in the market by major players.

Banks set rates for their customers' loans and deposits. These customers are mostly not major players and, therefore, have limited ability to negotiate rates.

User Avatar

Wiki User

13y ago

What else can I help you with?