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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.
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Jane, the manager of a company manufacturing air-conditioning units can choose between two production technologies for a new product line. If she chooses and installs technology 1,
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 ec
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