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The money market allows money available for short periods to be directed to those who can use it. The functions fulfilled by the money market are the following:
- Provides a mechanism such that institutions in a deficit position can borrow funds temporarily and institutions in a surplus position can invest the funds temporarily.
- The money market allows institutions to hold a proportion of their funds in liquid assets that will enable them realise cash quickly should the need arise.
- Enables the imbalances in the supply of money between the financial system as a whole and the government to be smoothed out. Through the conduct of Open Market Operation, the Central Bank will, through MMDs, daily offer to buy/sell money market instruments to the public in order to influence the money supply level. Where the intention is to decrease money supply (i.e. mop up liquidity), the CBN will sell instruments to the market. Conversely, where one intends to increase the money supply level (provide liquidity), the CBN will offers to buy instruments from the market.
What else can I help you with?
How does a hawker earn money?
The duties of a hawker is to sell merchandise that is easily transportable. A hawker usually sells at carnivals and roadside markets.
Money market instrument and institution in Nigeria?
application of money market instrument in nigeria
Nigeria's ranking in money?
nigeria is the 7 richest country
Can money be send from Algeria to Nigeria thought western union?
Money can be transferred from Algeria to Nigeria through Western Union.
Why banks have not eliminated the need for the money markets.?
Banks ARE the money markets. They are hardly likely to eliminate themselves.
Crops that are sold for money on world markets?
Crops that are sold for money on world markets are called cash crops.
What is the postal code for central bank of Nigeria?
It's a scam. Do not send any of your money to Nigeria.
How much money can you take into Nigeria?
20,000.00
How much does it cost to send 1100 to Nigeria?
Each service charges a different amount to wire money from US to Nigeria. Look at Table 1 in the link for the cheapest way to send money to Nigeria from US.
Explain the derivative functions of money?
Explain the derivative functions of money?
Is there a Diplomatic Courier Service Company in Nigeria?
Is there a Diplomatic Courier Company by name Travel Better Courier in Nigeria?
How much does it cost to send 1100 usd to Nigeria?
Each service charges a different amount to wire money from US to Nigeria. Look at Table 1 in the link for the cheapest way to send money to Nigeria from US.
