Money markets refer to markets where excess corporate cash is exchanged for foreign currencies that can earn a higher return than domestic money.

Question

Quizplus · Accepted Answer

Money markets are financial markets in which short-term borrowing and lending occurs. They are used by governments, financial institutions, and corporations to manage their short-term cash needs. Foreign exchange markets, on the other hand, are where foreign currencies are traded for one another. While there may be some overlap between the two markets, they are not interchangeable concepts.

Money Markets Refer to Markets Where Excess Corporate Cash Is