Finance companies play a unique role in money markets by

Question

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Finance companies provide loans and credit to consumers, which indirectly connect them to money markets by offering access to short-term finance. Finance companies also invest in money market securities, but they do not combine consumer investments to purchase these securities. Additionally, finance companies may not necessarily borrow in capital markets to finance purchases of money market securities or assist the government in its sales of U.S. Treasury securities.

Finance Companies Play a Unique Role in Money Markets by