Home >

Accounting Knowledge: Money Knowledge

2010/12/14 10:54:00 38

Accounting Only Knowledge Currency

The money market is also known as the "short-term financial market" and "short-term capital market". It is divided into funds and short term securities markets that are not more than one year. The participants are the Ministry of finance, various government agencies, various banks and non bank financial institutions and companies.


The money market has four basic characteristics:


First, the trading objects are mainly short term, strong liquidity, low risk, and very few credit instruments, such as short-term government bonds.

Bank

Large negotiable certificates of deposit, commercial bills, bank acceptance bills, etc.


Two, the main way of pactions is interbank borrowing and repurchase agreements.


Three, the purpose of trading in the money market is to solve the demand and supply of short-term funds.

Finance

The most active part of the market system;


The four is the central bank (or monetary authority).

direct

Participation is the main channel for the central bank to connect with commercial banks and other financial institutions. It is the lever fulcrum for the state to regulate the national financial activities by means of monetary policy tools. Therefore, some western economists call the money market the core mechanism of a country's financial system.

  • Related reading

Futures Market Characteristics

Accounting teller
|
2010/12/14 10:52:00
39

什么是期权市场?

Accounting teller
|
2010/12/14 10:49:00
41

什么是预算外资金?

Accounting teller
|
2010/12/14 10:47:00
99

How To Understand The Economic Value Added?

Accounting teller
|
2010/12/14 10:46:00
44

什么是平衡积分卡?

Accounting teller
|
2010/12/14 10:43:00
105
Read the next article

The Fundamental Of Management Communication Is Win-Win.

Communication plays a key role in the management process. The 70% problem of an enterprise is due to the bad communication. Successful managers need to communicate with employees 80% times. Why does communication play such a big role?