In the overnight market,governments of different countries obtain long-term loans from the governments of other countries.

Question

Quizplus · Accepted Answer

The overnight market refers to short-term borrowing and lending among financial institutions. Governments typically obtain longer-term loans by issuing bonds in the public market or through negotiations with international organizations such as the International Monetary Fund. Loans between governments may occur through bilateral agreements, but these are not typically facilitated through the overnight market.

In the Overnight Market,governments of Different Countries Obtain Long-Term Loans