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The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a component of the financial market for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.
A money market account (MMA) or money market deposit account (MMDA) is a deposit account that pays interest based on current interest rates in the money markets. [1] The interest rates paid are generally higher than those of savings accounts and transaction accounts; however, some banks will require higher minimum balances in money market accounts to avoid monthly fees and to earn interest.
A money market fund (also called a money market mutual fund) is an open-end mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. [1] Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of ...
Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash office. Bank wire transfers are often the most expedient method for transferring funds between bank accounts. A bank wire transfer is a message to the receiving bank requesting them to effect payment in accordance with the instructions given.
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Financial trading venues such as stock exchanges, futures exchanges, commodities exchanges and electronic trading platforms, are not always considered financial market infrastructures where they are subject to competition, but are included in the definition of financial market infrastructures in certain jurisdictions such as Switzerland. [6]
Money market rates and spreads; Changes in monetary policy affect money market rates and spreads, which influence broader financial conditions and economic activity. [5] Inflation expectations; The interaction between money growth rules and interest rates plays a crucial role in shaping inflation expectations and monetary policy effectiveness. [6]
Money market: Money market is a market for dealing with the financial assets and securities which have a maturity period of up to one year. In other words, it is a market for purely short-term funds. Capital market: A capital market is a market for financial assets that have a long or indefinite maturity. Generally, it deals with long-term ...