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The need for the money market is driven by the needs of major players to get the best deal for the money they have to invest or need to borrow. The money market sets rates based on the supply and demand in the market by major players.

Banks set rates for their customers' loans and deposits. These customers are mostly not major players and, therefore, have limited ability to negotiate rates.

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11y ago
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13y ago

For the same reason no other industry would eliminate the market in which it traded.

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Wiki User

9y ago

If interest rates rise sharply in the future, long-term bonds may suffer such a sharp fall in price.

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Anonymous

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3y ago

Market that can b

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Q: Why do bank not eliminate the need for money markets?
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Continue Learning about Economics

By the 1820s this farming region in need of markets favored a policy that made land easily available and provided money for the building of roads and canals The people supported a National Bank un?

The farming region in the 1820s that originally supported the National bank was the Southern region. When the National Bank changed their policies and made loans harder to get the people no longer supported the National Bank.


Why does the central bank of the Philippines poes not make money so that the Philippines will not need to borrow money for education from the World Bank?

One word. Inflation. Printing more money causes prices to rise because of it's abundance.


Why do people want money so bad?

Cause people need money to buy stuff and t' pay bills so they either rob a bank or steal from another. More prefer to rob a bank and bring a gun. Who walks into a bank with a sword?


Why do markets exist?

Markets allow people to buy what they need to consume and sell the specialized goods and services they produce.


3 What are the four key factors that make the industrial markets differ from the consumer markets?

Industrial markets are more complicated and need technical knowledge. They have knowledgeable buyers who analyze the products. Products are sold on request that need quotations and specifications. Information on these markets are difficult and qualitative. However consumer markets are more simple. The buyers are not experts while sellers are powerful. Purchasers need not buy through listed prices. Market information is enormous through database information.