Role of Money Market in Supporting Economic Growth

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reserves and manage daily liquidity demands. Corporations use it to finance payroll and inventory purchases, while investors benefit from safe and liquid

 

The Money Market plays a vital role in supporting global economic development by facilitating efficient allocation of short-term capital. It helps businesses manage working capital, supports government funding requirements, and strengthens the banking sector’s financial stability. By enabling seamless fund transfers, the money market ensures continuous economic operations.

Financial institutions rely on this market to maintain regulatory reserves and manage daily liquidity demands. Corporations use it to finance payroll and inventory purchases, while investors benefit from safe and liquid investment opportunities. This interconnected financial ecosystem helps maintain confidence among market participants and ensures smooth functioning of the economy.

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