---

From the borrower’s perspective the priority is to access funds. Conversely, from the borrower’s perspective, the availability of funds from the money market serve a variety of functions, which depends on the context and the particular borrower. For example, a company might see an opportunity to initiate a new business venture or to purchase a commodity whose price has dropped; in such a case money markets enable the company to finance their commerce and trade without incurring long-term debt. A company under financial strain might not have the funds to pay their employees’ salaries, in which case the money markets can give them access to the necessary funds. Governments can also face similar, and sometimes unrelated situations that may necessitate them to access short-term funding.

Edit | Delete | Back to List