FIN 366 Market Participation Paper

SAMPLE

The Role of Money Markets -The economic importance of money market instruments allow economic units such as treasury bills, certificate of deposits, and commercial paper are used to bridge the gap between cash requirements and cash expenditures. These securities allow commercial banks, businesses, and consumers to invest in short-term investments, considered a low risk, and earn a profit thereby assist in solving short-term liquidity problems. Finally, the United States Treasury securities are the most purchased money market instruments with an estimated 7 Trillion dollars annum (Kidwell, Blackwell, Whidbee, &Peterson, 2007, p.168).

Additionally, commercial banks, financial institutions, and other businesses use money markets as a means to adjust their liquidity by lending, selling, or investing in short term securities to raise

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Individual Assignment: The Role of Financial Institutions in Financial Markets Paper

Write a 700- to 1,050-word paper, describing at least three major financial institutions.

Describe possible markets those institutions, such as those in the following list, are involved with and explain interactions among them. Cite at least two sources.

o Commercial banks

o Insurance organizations

o Investment banks

o Pension funds

o Mutual funds

o Underwriting stock or bond insurance

o Insurance products

Format your paper according to APA standards.