what is the defintion of money? Please define the concept and describe it key features, uses, strengths, weaknesses, and relevance to the evolution of finance and banking in the United States.
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what is the defintion of money? Please define the concept and describe it key features, uses, strengths, weaknesses, and relevance to the evolution of finance and banking in the United States.
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- How can monetary policies created by a central bank affect financial markets and financial institutions? Instructions: Answer in 2 sentencesExplain your understanding of money markets? Would you classify this as a financial market, financial instrument or financial institution? Give a reason for your answer.What distinguishes a money market instrument from other financial instruments? Please give us a wide response.
- Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…What are some of the ways that banks can borrow short-term funds when they need "liquidity"?(Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12 They can borrow directly from the Securities & Exchange Commission through the "regulatory" market. They can borrow from the Department of Treasury through the "Treasury" window. They can borrow another bank's reserves through the "fed funds" market. The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day. They can borrow directly from the Federal Reserve through the "discount window".