Participation in money market
1 answersQuestion asked ( July 27, 2009 , Shopping / Finance )
Can individuals participate in money markets? Can anybody kindly tell who are the typical participants of money market transactions in general?
Answers to : money market...
Answer
Banks- banks use money market for their daily transactions which deal in fixed deposits (also includes certificates of deposits) and loans ranging from 1-18 months. For management of planning operation and cashflow they follow fixed terms.
Local Authorities- local authorities use money market for short term funds up to 1 year.
Building societies- these societies both lend and borrow funds in money markets.
Finance house –these operate in high risk lending, by means of secondary mortgage or hire purchase arrangements.
Companies – Large companies like Unilever and British Telecommunications plc have borrowed from money markets by issuing an unsecured instrument called Commercial Paper for short term credit having a maturity of up to 270 days.
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