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Money and credit - Ivanov V.M.


7.1. Money Market Definitions

Questions about the economic content of the money market, about its specific features and economic functions, about the difference between the money market and the ordinary goods market are rather complicated. They are ambiguously interpreted in the economic literature. In this regard, we give the most common and most complete definitions of the money market.

Money market - a sector or part of the debt capital market in which short-term deposit and debt operations (for up to 1 year) are carried out and which determine the movement of working capital of enterprises and organizations, short-term funds of banks, institutions, the state and population.

The money market is a market in which the demand for money and the supply of money determine the interest rate or the level of interest rates.

The money market is a network of special (banking and financial) institutions that provide the interaction of supply and demand for money as a specific product.

Under the money market understand the market for highly liquid assets.