FMF9

Syllabus B3. The Nature And Role Of Money Market 3 / 3

a) Describe the role of the money markets in:
i) providing short-term liquidity to the private sector and the public sector
ii) providing short-term trade finance 
iii) allowing an organisation to manage its exposure to foreign currency risk and interest rate risk.

b) Explain the role of banks and other financial institutions in the operation of the money markets.

c) Explain the characteristics and role of the principal money market instruments:
i) interest-bearing instruments
ii) discount instruments
iii) derivative products
The Nature And Role Of Money Market