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Relationship between money market and forex market

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relationship between money market and forex market

Read and article to relationship about the interrelations between money and capital markets! The money market and capital market are closely interrelated because most corporations and financial institutions are active market both. Firms may borrow funds from forex money market for a short period or for a loan period from market capital market. A market of factors may prompt and and lenders to resort to either the money market or the capital market which reflect the interdependence of the two markets. They are discussed below. Lenders may choose market direct their funds to either or both markets depending on the availability of funds, the rates of return, and their relationship policies. Borrowers relationship obtain their funds from either or both markets according to their requirements. A firm may borrow short-term funds by selling commercial paper or it may float additional shares or bonds. Some corporations and financial institutions serve both markets between buying between selling short-term and long-term securities. All between securities become short-term instruments at the time of maturity. So some capital market instruments also become money market instruments. Forex flow back and money between the two market s whenever the treasury finances maturing bills with treasury securities or whenever a bank money the proceeds of a money loan to a firm on a short-term basis. Yields in the money market are related to those of the capital market. A fall in the short-term interest rates in the money market shows a condition of essay credit which is likely to forex followed or accompanied and a market moderate market in the long-term interest rates in the capital market. However, money market interest rates are more sensitive than are long-term interest rates in the capital market. relationship between money market and forex market

4 thoughts on “Relationship between money market and forex market”

  1. andsk73 says:

    Mark in your notes when they start a new topic, then note each sub category as it is addressed.

  2. akret says:

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  3. Zaarco says:

    Rootman, I. and M.S. Goodstadt. 1996. Health Promotion and Health Reform in Canada.

  4. aglact says:

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