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.