Function of Money Markets

The money markets are the place where money is "wholesaled".  As such the supply of money and interest rate which are of significance to the whole economy is determined there. 

It is also used by the central bank to make its monetary policy effective.

Posted Date: 11/29/2012 4:59:20 AM | Location : United States

Ask an Expert

Related Discussions:- Function of money markets, Assignment Help, Ask Question on Function of money markets, Get Answer, Expert's Help, Function of money markets Discussions

Write discussion on Function of money markets
Your posts are moderated

Write your message here..

Related Questions

Discount rate (bank rate), Discount Rate (Bank Rate) This is the rate ... Discount Rate (Bank Rate) This is the rate on central bank advances and is also called official discount rate or "minimum lending rate".  When commercial banks find themselves

Maximizing profit in firm, how does knowledge of economics help in maximizi... how does knowledge of economics help in maximizing profit in firm

Decision tree analysis, I. A farmer – businessman is in a quandary as to wh... I. A farmer – businessman is in a quandary as to what crop to plant in his land. He has the option to plant Crop A, Crop B, or Crop C. f the weather turns out to be good and the

Describe the salient features of the monetary policy, Problem 1: Using ... Problem 1: Using the policy neutrality proposition, Illustrate and determine the effectiveness of applying counter-cyclical monetary policy to stabilise output around its long

State the traditional demand theory, State the Traditional demand theory ... State the Traditional demand theory So an over-simplified and the most commonly stated demand function is: Dx = f (PX) thatconnotes that demand for commodity X is the function

Assignment, encrimetal concepts encrimetal concepts

Differentials and disequilibrium, DIFFERENTIALS AND DISEQUILIBRIUM In ... DIFFERENTIALS AND DISEQUILIBRIUM In a free enterprise system, workers aim at maximizing their wages.  Hence, it would be expected that workers would move form low-paying indus

Effect on a consumer''s equilibrium, Problem: (a) Explain with the help... Problem: (a) Explain with the help of a diagram, the effect on a consumer's equilibrium, of an increase in the price of commodity X while the consumer's money income and price

Briefly explain the importance of forecasting for managers, Question: i... Question: i) Briefly explain the importance of forecasting for managers? ii) To what extent will managers rely on surveys in business forecasting? iii) What do you mea

Institutional intervention theories, The institutional intervention theorie... The institutional intervention theories Collective bargaining provides an example of what is sometimes called bi- lateral monopoly; the trade union being the monopolist suppli