Copyright © 2000 Addison Wesley Longman Slide #9-1 Chapter Nine THE MONEY MARKETS Part IV Financial Markets.

Slides:



Advertisements
Similar presentations
Commercial Bank Operations
Advertisements

6 Money Markets. Chapter Objectives Provide a background on money market securities Explain how institutional investors use money markets Explain the.
Money Market Instruments. n money market instruments are defined as debt instruments with a maturity of one year or less. Money Markets serve important.
Financial Markets and Institutions 6th Edition
Copyright 2014 Diane Scott Docking
Part 6 Financing the Enterprise © 2015 McGraw-Hill Education.
Money Markets FNCE 4070 Financial Markets and Institutions.
CHAPTER 7 Money Markets. Copyright© 2003 John Wiley and Sons, Inc. Overview of the Money Market Short-term debt market -- most under 120 days. A few high.
Chapter 11 The Money Markets
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Asset Classes and Financial Instruments CHAPTER 2.
2-1 Financial markets segments Money Market Short-term, marketable, liquid, low risk debt securities Money market instruments sometimes called cash equivalents.
Unit 5 Microeconomics: Money and Finance Chapters 11.2 Economics Mr. Biggs.
Chapter # 4 Instruments traded on Financial Markets.
Characteristics of Taxable Securities Money Market Investments Highly liquid instruments which mature within one year that are issued by governments and.
Cash Or Liquid Asset Management. Financial Institutions Deposit-Type Financial Institutions – Commercial Banks – Savings and Loan Associations – Savings.
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Five Money Markets.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin 5-1 Chapter Five Money Markets.
5-1 Money Markets Money markets involve debt instruments with original maturities of one year or less Money market debt issued by high-quality (i.e., low.
©2009, The McGraw-Hill Companies, All Rights Reserved 5-1 McGraw-Hill/Irwin Chapter Five Money Markets.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
The Money Markets Dr. Lakshmi Kalyanaraman1. Characteristics Sold in large denominations Have low default risk Mature in one year or less from their original.
Chapter Eight The Money Markets Copyright © 2004 Pearson Education Canada Inc. Slide 8–3 The Money Markets Money Markets Defined 1.Money market securities.
Contemporary Investments: Chapter 3 Chapter 3 DIRECT INVESTMENT ALTERNATIVES What are money market instruments? What are bonds and other long-term fixed.
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Securities CHAPTER 2.
Part Four Financial Markets.
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin 5-1 Chapter Five Money Markets.
Investment Alternatives (Assets)
Copyright © 2008 Pearson Education Canada 9-1 Chapter 9 Debt Securities.
Financial and Real Estate Markets
Part IV Financial Markets. Part IV Financial Markets.
Chapter 9 The Money Markets. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9-2 Chapter Preview We review the money markets and the securities.
Chapter 5 Money market Dr. Lakshmi Kalyanaraman 1.
Financial Assets (Instruments)
1 Chapter 6 Financial Markets, Instruments, and Participants ©2000 South-Western College Publishing.
Financial Instruments
The Money Market Chapter 9 © 2003 South-Western/Thomson Learning.
Bonds and other financial assets
1 Review questions  1.Distinguish between primary and secondary markets and between money and capital markets.
CHAPTER 7 Money Markets. Copyright© 2003 John Wiley and Sons, Inc. Overview of the Money Market Short-term debt market - most under 120 days. A few high.
Prepared by Dr Khairul Anuar
ALOMAR_212_4 1 Financial Market Instruments. ALOMAR_212_42 What are the securities (instruments) traded in the financial market? 1- Money Market Instruments:
Copyright 2015 Diane Scott Docking
Chapter Five Money Markets McGraw-Hill/Irwin.
Copyright© 2003 John Wiley and Sons, Inc. Power Point Slides for: Financial Institutions, Markets, and Money, 8 th Edition Authors: Kidwell, Blackwell,
Chapter Six Money Markets © 2001 South-Western College Publishing Company.
Financial Markets & Interest Rates. Financial System Surplus Economic Units Surplus Economic Units Deficit Economic Units Deficit Economic Units.
Financial Assets (Instruments) Chapter 2 Requests for permission to make copies of any part of the work should be mailed to: Thomson/South-Western 5191.
Chapter 21 – Bank Obligations BA 543 Financial Markets and Institutions.
CHAPTER 6 Money Markets. Chapter Objectives n Provide a background on money market securities n Explain how institutional investors use money markets.
All Rights ReservedDr David P Echevarria1 CHAPTER 6 MONEY MARKETS.
MONEY MARKETS 1. 1.Money market securities are debt securities with a maturity of one year or less. 2.Issued in the primary market through a telecommunications.
1 CHAPTER 6 Money Markets. 2 CHAPTER 6 OVERVIEW This chapter will: A. Provide a background on the most popular money market securities B. Explain how.
Financial Markets, Instruments, and Market Makers Chapter 3 © 2003 South-Western/Thomson Learning.
Copyright © 2003 South-Western/Thomson Learning All rights reserved. Chapter 2 The Creation of Financial Assets.
CHAPTER 7 Money Markets Copyright© 2012 John Wiley & Sons, Inc.
1 CHAPTER 4 THE MONEY MARKET N. 2 Learning Objectives Describe the money market. Know the different types of financial instruments available in the money.
Short term securities Bank management A Typical Trade Transaction ImporterExporter Bank I Bank X 1. Importer orders goods 2. Exporter agrees to fill.
An understanding..  It is a market where money or its equivalent can be traded.  Money is synonym of liquidity.  It consists of financial institutions.
Part Four Financial Markets. Chapter 9 The Money Markets.
Chapter Five Money Markets.
Copyright © 2012 Pearson Prentice Hall. All rights reserved. PART FIVE FINANCIAL MARKETS.
MONEY MARKET.
Money Markets Shuyan Wu Yonsei GSIS Apr
CHAPTER 7 Money Markets.
CHAPTER 6 MONEY MARKETS All Rights Reserved Dr David P Echevarria.
Money Markets.
CHAPTER 7 Money Markets.
Chapter Five Money Markets McGraw-Hill/Irwin.
Now that’s a lot! In its 2009 annual report, Microsoft listed $25 billion in short-term securities on its balance sheet, plus $6 billion in actual.
Presentation transcript:

Copyright © 2000 Addison Wesley Longman Slide #9-1 Chapter Nine THE MONEY MARKETS Part IV Financial Markets

Copyright © 2000 Addison Wesley Longman Slide #9-2 The Money Markets Money market securities are usually sold in large denominations. They have low default risk. They mature in one year or less from their issue date.

Copyright © 2000 Addison Wesley Longman Slide #9-3 Interest Rates Available on Several Money Market Instruments

Copyright © 2000 Addison Wesley Longman Slide #9-4 Participants in Money Markets U.S. Treasury Department Federal Reserve System Commercial Banks Businesses Investment and Securities Firms Individuals (mostly through money market mutual funds)

Copyright © 2000 Addison Wesley Longman Slide #9-5 Money Market Instruments Treasury Bills Federal Funds Repurchase Agreements Negotiable Certificates of Deposit Commercial Paper Banker’s Acceptance Eurodollars

Copyright © 2000 Addison Wesley Longman Slide #9-6 Results of a Treasury Auction

Copyright © 2000 Addison Wesley Longman Slide #9-7 Treasury Bill Rate and Inflation Rate,

Copyright © 2000 Addison Wesley Longman Slide #9-8 Federal Funds

Copyright © 2000 Addison Wesley Longman Slide #9-9 Negotiable Certificates of Deposit Comparing Interest Rates on CDs and T-bills

Copyright © 2000 Addison Wesley Longman Slide #9-10 Commercial Paper Compare Interest on Commercial Paper to Bank Prime Rate

Copyright © 2000 Addison Wesley Longman Slide #9-11 Advantages to Banker’s Acceptances 1. Exporter paid immediately. 2. Exporter shielded from foreign exchange risk. 3. Exporter does not have to assess the financial security of the importer. 4. Importer’s bank guarantees payment. 5. Crucial to international trade.

Copyright © 2000 Addison Wesley Longman Slide #9-12 Eurodollars London interbank bid rate (LIBID) The rate paid by banks buying funds London interbank offer rate (LIBOR) The rate offered for sale of the funds Time deposits with fixed maturities Largest short term security in the world

Copyright © 2000 Addison Wesley Longman Slide #9-13 Interest Rates on Money Market Instruments

Copyright © 2000 Addison Wesley Longman Slide #9-14 Money Market Securities and Their Depth

Copyright © 2000 Addison Wesley Longman Slide #9-15 Money Market Mutual Funds Open-end investment funds that invest only in short-term securities. No fee for purchasing or redeeming shares. Minimum initial investment of $500 to $20,000. Check-writing privileges. No fee for writing checks No minimum check amount Earn 0.5% to 1% higher return than interest earned on money in the bank. Low risk of default, low rate of risk. Popular to small investors.

Copyright © 2000 Addison Wesley Longman Slide #9-16 Growth in Money Market Mutual Funds

Copyright © 2000 Addison Wesley Longman Slide #9-17 Money Market Fund Assets

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.