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1. Money market generates higher rate of returns than holding cash.
2. Money Market funds are liquid
3. low risk
The three fundamental characteristics of money market instruments are: (a) low default risk, (b) short-term to maturity, and (c) high marketability. These characteristics give money market instruments their characteristic of being low risk. Money market investors demand low-risk securities because their cash excesses are only temporary.
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What are some characteristics of money market instruments?
please i'd like to know thecharacteristics of money market especially in Nigeria
Money Market Instruments in nigeria in 2009?
The major money market instrument are treasury bills and bonds, federal agency.
What is capital market and debt market?
The capital market provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a of funds. The capital market as a whole consists of overnight to long-term funding. The short to medium end of the maturity spectrum is called the money market proper, and the long end is identified as the capital market. The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments. There has been an explosion of innovation in the creation and development of instruments in the money and capital markets since about 1960 in both debt and equity instruments. -Jennifer
What is the scope on money market instruments?
it is correct.
Are equity shares a money market instruments?
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market. The equity segment of the exchange is different from other markets such as debt market and money markets.
What are the different types of money market instruments available for investment?
The different types of money market instruments available for investment include Treasury bills, commercial paper, certificates of deposit, repurchase agreements, and money market funds.
How do money market firms work?
Money market fund firms operate by combining many small investors' funds to accumulate the volume of money needed to buy money market instruments.
What are types of financial instruments in capital markets?
The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments.
Examples of money market instruments?
Some examples of money market instruments include commercial paper commodities such as bonds and treasury bills. They are highly liquid and they have maturity periods based on different agreements.
Is treasury bond issued 29 years ago with sis month remaining before it matures a money markets instruments?
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market.
What are money market instruments?
Money market instruments are investment choices that help optimize funds. Some of these might include Government of Canada Treasury Bills, Banker Deposit Notes and Commercial/Financial Paper.
What are the Characteristics of money markets in Kenya?
The money market in Kenya is characterized by short-term debt instruments such as treasury bills, commercial paper, and bank deposits. It provides a platform for institutions to manage their short-term liquidity needs efficiently. The market is regulated by the Central Bank of Kenya to ensure stability and promote transparency.
