Explain the different sub- markets of money market
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A sub-market forms part of an overall market, but tends to have some unique operating characteristics. For example, the banking market could be split into the sub-markets of credit cards, home loans, online savings, and so on. Large financial institutions would probably operate in all these sub-markets, whereas smaller and specialist players may only operate in one or two sub-markets. This means that in each sub-market there would be a different competitive set and market structure.
Unfortunately, the terminology used in this area is somewhat confusing across different textbooks. Between them they sometimes use the terms ‘market’, ‘sub-market’, ‘market segment’ and ‘product-market’ interchangeably. Hopefully the following discussion will help clarify the terms.
Unfortunately, the terminology used in this area is somewhat confusing across different textbooks. Between them they sometimes use the terms ‘market’, ‘sub-market’, ‘market segment’ and ‘product-market’ interchangeably. Hopefully the following discussion will help clarify the terms.
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