Question

Describe the features of three forms of Money Market funding that can be used by organisations to raise finance.

Answer 1

Three forms of money market funds are:

1. General money market funds , in which the organisations raise money through a variety of short term funds. Instruments in these markets include commercial papers, bills of exchange etc.

2. US Government short term funds, it is a market where the Federal government raises funds through treasury bonds, T Bills and other government backed securities.

3. Short term municipal funds ,where the local governments raise money through various short term securities.