Compare and contrast a money market and derivatives market
What will be an ideal response?
Answer: The money market is an over-the-counter marketplace for short-term debt instruments such as Treasury bills and commercial paper. Its purpose is to help corporations and government agencies meet short-term liquidity needs. Individuals can invest indirectly by purchasing money market mutual funds. These funds generally offer low returns.
The derivatives market is as diverse as derivatives themselves and includes both exchange-traded and OTC derivatives. Futures and some options are traded on organized exchanges with time-tested financial controls and government regulation. All other derivatives, including the credit default swaps that made headlines in recent years, are traded over the counter.
You might also like to view...
How many years is an attachment lien good for:
A: 1 year; B: 2 years; C: 3 years; D: 4 years.
The most appropriate financial performance standard of a department store retail buyer is _____
a. customer satisfaction b. total unit sales c. total dollar gross profit in department d. total dollar sales