financial markets Flashcards
what are the three financial markets?
the three financial markets are the money market, capital market and the currency market
what is the money market?
the money market is a market for short-term loan finances for households and businesses
who is the money market for?
the money market is for households and businesses
how long is money normally borrowed and lent for in the money market?
money is normally borrowed and lent for up to twelve months on the money market
what lending does the money market also include?
the money market also includes inter-bank lending and short-term government borrowing
what does inter-bank lending mean?
inter-bank lending means the commercial banks providing liquidity for each other
what is short-term government borrowing?
short-term government borrowing includes 3-12 month treasury bills which are used to fund the government’s fiscal budget deficit
what are capital markets?
capital markets are markets for medium to longer term loan finance where securities such as shares and bonds are issued to raise medium to long-term financing
