Articles of category "Currency markets"

The money market is a general term for the markets in which banks lend to and borrow from each other, trade financial instruments such as Certificates of Deposit (CDs) or enter agreements such as Repos and Reverses. The market normally trades in maturities up to one year. The money market rates between for example two currencies Japanese Yen to the Dollar means that Ґ120 is worth the same as $1. The money market rates are also known as a foreign money market rates.

Money market funds have been around for 30 years and are a very popular place for investors to park their money. Money market fund is an open-end mutual fund which invests only in money markets. The main goal is the preservation of principal, accompanied by modest dividends. Money market mutual funds are among the safest types of mutual funds, it still is possible for the money market fund to fail, but it is unlikely.