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Questions and Answers
What is one disadvantage of the money market compared to equity markets?
What is one disadvantage of the money market compared to equity markets?
Returns are lower
What characteristic of money market limits retail participation?
What characteristic of money market limits retail participation?
High threshold limits for transacting
What is a disadvantage of the money market in terms of tax advantage?
What is a disadvantage of the money market in terms of tax advantage?
Lower tax advantage due to 3-year qualifying period for LTCG
What risk factor is associated with commercial papers in the money market?
What risk factor is associated with commercial papers in the money market?
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What type of corporates enjoy the benefits of raising funds in the money market?
What type of corporates enjoy the benefits of raising funds in the money market?
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What are some risks that the money market suffers from?
What are some risks that the money market suffers from?
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What is the role of a central bank in a developed money market?
What is the role of a central bank in a developed money market?
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What is the importance of an organised banking system in the money market?
What is the importance of an organised banking system in the money market?
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