Question 33
Financial InstitutionsThe major function of the money market is to
- A.provide funds for long-term financing
- B.provide funds for short-term financing
- C.stabilize the value of the local currency
- D.stabilize domestic prices.
Show the answer and explanation
Answer: B (provide funds for short-term financing)
Explanation
The money market deals in short-term loans and securities; long-term funds come from the capital market.