3
Money market products
Overview of money market products
INTRODUCTION
The essence of a successful investment is profit enhancement and risk reduction. Whilst risks associated with unforeseeable events always remain, it is crucial to understand the products underlying a chosen investment strategy and be able to make comparisons with the alternatives. The concepts of compounding, reinvestment rates and future vs. present value of money are necessary tools for such comparisons. By using the virtually riskless loans and deposits as a benchmark, we can assess the suitability of more risky securities. This chapter introduces the fundamental concepts of ...
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