money market.doc

天津外国语大学国际商学院 金融专业英语课程论文（三） 题 目： Money Market 姓 名： 孙宏方 学 号： 1107534047 专 业： 金融学 年 级： 2011级 班 级： 11704 任课教师： 万羿歌 2014 年 6 月 目录 1. History 4 2. Participants 4 3. Functions of the money market 5 4. Common money market instruments 7 Abstract As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less. Trading in the money markets is done over the counter and is wholesale. Various instruments exist, such as Treasury bills, commercial paper, bankers acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities. It provides liquidity funding for the global financial system. Money markets and capital markets are parts of financial markets. The instruments bear differing maturities, currencies, credit risks, and structure. Therefore they may be used to distribute the exposure. Key words ：money market；trading；funding Money Market 1. History The money market developed because there are parties that had surplus funds, while others needed cash. Today it comprises cash instruments as well. 2. Participants The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called paper. This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity. The core of the money market consists of interbank lending—banks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments. These instruments are often benchmarked to (i.e. priced by reference to) the Lon