Chapter 7

Money Market and Liquidity Management

Abstract

The money market is used to finance liquidity. Liquidity is the ability to satisfy the liabilities at due time. The basic measurement of liquidity is working capital. Working capital is the difference between current assets and current liabilities.

Keywords

working capital
capital cycle
commercial paper
bill of exchange
discount
LIBOR
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7.1. Money market

Money market – the market for liquid assets.
The primary goal of the money market is to provide working capital to the entities. The money market does not have a standard structure and one place of operation; typically it is an OTC market. ...

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