The role of money market in any economy proceed to enjoy debates, hence a variety of studies have evolved over time. Money markets play a key position in banks liquidity management and the transmission of financial coverage (Rigg and Zibell, 2009). In normal occasions cash markets are among the many most liquid within the financial sector by providing the suitable instrument and companions for liquidity trading, the cash markets allows the refinancing of brief and medium terms position which facilitates the mitigation of your enterprise liquidity risk.
Individuals contain in the cash market might be both the lender or the borrower. They can be the federal government, companies, banks, investment corporations (brokerage corporations), finance companies (business leasing companies), insurance coverage corporations (property and casualty insurance coverage companies), or pension funds supplier. Because of the high amount of funds wanted throughout the transactions within the money market, the individual buyers are …Continue reading