Kate R.

Galanida
BSA 3.1A

I. Purpose of Money Market

Discussion:

The advantages of the banks have are, first it has a very important rule in
people lives to help them save a huge proportion in public wealth which is going to be
spoiled in the storage and earn interest at the same time. It helped people the same as
the business in a way that was not possible before the establishment of modern banks.
Money market exist because of the purpose that it will improve the ability of the
retailers of financial service, saving institution, lending agencies and different kind of
financial markets. In addition, its also for the government to do their job properly.

II. Participation in the Money Market

1. Investment Companies
Discussion:

Investment companies meet its liquidity requirement is that, it helps to

measures the funds ability to meet near-term shareholders redemption. Aside from
liquidity is easily converted into cash, making excess investment is done by
comparing the liquidity assets. Here are some example of a Investment Companies,
Manulife, Moneymax.ph and Loan Solution.ph.

2. Commercial Banks
Discussion:

Commercial banks meet its liquidity requirement, it create expanding

their deposit at the same time depositor earn interest on their deposit with the bank.
They are not performing a long-term process because they believe that the financing
due is need to maintain the liquidity asset. Example of commercial banks is Philippine
Nation Bank (PNB).

3. Bureau of Treasury
Discussion:

Bureau of treasury meets its liquidity requirement is by continuously

focused for the reissuing and by building up the size of their security issuance.