Commercial banks take part in the money markets as:

Question

Quizplus · Accepted Answer

Commercial banks take part in the money markets as both lenders and borrowers of funds. They lend funds by providing loans to individuals and corporations, and they also borrow funds by issuing certificates of deposit and other short-term securities. This allows them to manage their liquidity needs and profit from the interest rate differential between their borrowing and lending rates. Additionally, commercial banks can also act as underwriters for debt securities issued by their clients or other corporations.

Commercial Banks Take Part in the Money Markets As