第02章 货币市场(讲义)简易版.doc

Section 2.1 Text Characteristics Money market instruments, which are discussed in detail later in this chapter, have three basic characteristics in common: * They are usually sold in large denominations. * They have low default risk. * They mature in one year or less from their original issue date. Most money market instruments mature in less than 120 days. Participants of Money Market * The Government In money market, the government is unique because it is always a supplier and demander of money market funds. The U.S. Treasury is the largest of all money market borrowers worldwide. It issues Treasury bills（often called T-bills） and other securities that are popular with other money market participants. Short-term issues enable the government to raise the maturing issues. * The Central Bank The Central Bank is the Treasury’s agent for the distribution of government securities. The central bank holds vast quantities of Treasury securities that it sells if it believes that the money supply should be reduced. Similarly, the central bank purchases Treasury securities if it believes that the money supply should be expanded. The central bank’s responsibility for the money supply makes it the single most influential participant in the money market. * Commercial Banks Commercial banks hold a larger percentage of government securities than any other group of financial institutions. This is partly because of regulations that limit the investment opportunities available to banks. Specifically, banks are prohibited from owning risky securities, such as stocks or corporate bonds. There are no restrictions against holding Treasury securities because of their low risk and high liquidity. Banks are also the major issuer of negotiable certificates of deposit（CDs）, banker’s acceptances, and repurchase agreements. In addition to money market securities to help manage their own liquidity, many banks trade on behal