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How does money market fund engine operate ?


In finance study money market is that place where currencies , money bills and other treasury papers are purchased and sold . All deal is done under money market fund engine . If you want to understand its system , I can tell you this with simple steps of its procedure .

Ist step

Investors provides money by purchasing different currency and money products of financial institutes and big corporations .

2nd step

These corporation keeps this money under corporation's money fund and this money is used for given to others or direct use for production .

3rd step

Corporation provides interest on this fund annual basis .

4th step

Corporation is also responsible to repay the amount of commercial papers at its maturity but between this time these papers can sell to other investors on profit or loss under bargaining of demand and supply of commercial papers .

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Accounting Education: How does money market fund engine operate ?
How does money market fund engine operate ?
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