Money market is the market for short-term funds. It provides means for raising funds for meeting short-term needs of cash on one hand and deploment of surplus funds for short period on the other. Instruments in money market are: (i) Call money It is
How does monetary policy affect money market instruments (ie. bills, CB, etc.)? According to Chartalism, fiat (paper) money has value because a) it is declared legal tender. b) it is backed by precious metal such as gol...
Explain why there is a critical need within the economy and financial system to have money market instruments available to anyone who can afford them. What are the main reasons for the existence of financial intermediaries? Explain why a multinational corporation might invest funds in a financial ...
bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's
Now here's a bright idea—a lamp that saves you money and helps the environment! It lasts 10 times longer than an old-fashioned incandescent lamp and uses 80 percent less energy. [1] If you care about tackling global warming, lamps like this are a great place to start. During its ...
creeping up and it's an exciting trend, to be sure. But there's one important word of caution: how you measure and forecast something as vague as "the cloud" depends on how you define it: if the definition keeps expanding, perhaps that's one reason why the market keeps expanding too?
that a large securities market is a form of competition for the banking sector, to which banks respond by taking greater risks because they both compete for the business of firms that need to raise money. In countries where the stock markets are small and unsophisticated, there’s not much ...
What is the primary reason that households and firms demand money? 1. To make investments. 2. For speculative purposes. 3. To facilitate buying and selling. In a market economy, investors have a strong incentive to undertake profitable investments. What makes an investmen...
You should consider whether you can afford to take the high risk of losing your money. FAQ Below we answer some common questions about Linear Regression Line indicators. What is a bull market? A bull market is one in which prices are rising, encouraging buying. “Bullish” can be used to...
Why is it harder for traders to make money in fixed income markets with the advent of tapering? Explain why the price of a stock is inversely related to the equity risk premium. Why are bond ratings important to investors? What prevents people from just investing in emer...