Which of the following is involved in the money market?

Assessment: WAEC SSCE - Economics - 2013 (Objective) Subject: Economics

Question 1 Report

Which of the following is involved in the money market?

Answer Details
Commercial banks are involved in the money market. The money market refers to the market for short-term borrowing and lending of funds, typically for a period of up to one year. Commercial banks participate in this market by borrowing and lending money to other banks or financial institutions. They also issue short-term financial instruments such as certificates of deposit (CDs) and commercial paper to raise funds. Building societies are more focused on mortgage lending, development banks provide long-term financing for infrastructure projects, and the stock exchange is a market for buying and selling stocks and other securities.

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