MONEY MARKET

What is money market?

• platforms or systems where buyers and sellers interact to trade financial securities and commodities with low transaction costs

• a financial market in which only short-term debt intruments are traded ; mostly for liquidity management and not means for individual investors

• financial market whre individuals , institution and governments can buy or sell long-term financial securities

What is the purpose of money market for BORROWERS?

• for a low-cost source of temporary funds

• to sell and buy stocks

• to sell and buy bonds

• as a temporary investment that provide higher returns

What is the purpose of money market for INVESTORS/LENDERS?

• for a low-cost source of temporary funds

• to sell and buy stocks

• to sell and buy bonds

• as a temporary investment that provide higher returns

Which of the followings are money market instrument?

i. stocks

ii. commercial paper

iii. bonds

iv. treasury notes

• i and ii

• iii and iv

• ii and iv

• i and iv

_____ lend and invest money for short term gains