Question

only financial institutions can participate in​

Answer 1

Answer:

A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Virtually everyone living in a developed economy has an ongoing or at least periodic need for the services of financial institutions.

Answer 2

Answer:

Money Markets can only be participated by financial institution.

Explanation:

• The money market refers to the trading of very short term debt securities. At the wholesale level, high volumes of transactions take place between institutions and retailers. At the individual level, it includes money market  funds purchased by retail investors and money market accounts opened by bank customers. In all these cases, the money market is characterized by  high security and relatively low returns. The
• Money market buys and sells large volumes of very short-term bonds, such as overnight reserves and commercial paper. A person can invest in the money market by purchasing a money market  fund, purchasing Treasury bills, or opening a money market account with a bank.  Money market investments are characterized by security and liquidity. Money market accounts offer higher interest rates than regular savings accounts, but have higher account minimums and withdrawal limits.

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