The money market assists banks with their liquidity management.

Name: The money market assists banks with their liquidity management.
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Question

Quizplus · Accepted Answer

The money market is a market where short-term financial instruments, such as Treasury bills and commercial paper, are traded. Banks can use these instruments to manage their liquidity, by either investing excess funds or borrowing to meet short-term funding needs. Therefore, the statement is true.

The Money Market Assists Banks with Their Liquidity Management