| Introduction |
Financial intermediation is the process of acquiring funds from surplus economic units for the purpose of making available such funds to deficient economic units.
Financial institutions exist primarily for facilitating this intermediation process. They play an important role in business and the economy. Hey mobilize funds which can be accessed by borrowers for liquidity, working capital or capital expansion or in the case of national government, mainly for financing budgetary deficits. Financial institutions act as buffers between suppliers and users of funds, gathering funds in quantities and at terms that are acceptable to savers, and supplying funds in quantities and at terms acceptable to the users.
The money market is a market for low risk, highly liquid short terms evidences of indebtedness. It as conceived as a vehicle for mobilizing funds which can be accessed by borrowers at a relatively short period of time. It is a structure revolving around the trading of fixed income instruments issued by corporations, financial institutions, and the government.
There are several available in the money market. Please click on a product you wish to view.
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