What is the account with the account?

The

account market is part of the Financial System in the UK, which is also referred to as the discount market, the account market is a channel where new money is delivered by the economy through the Bank of England. It is the equivalent system of the Federal Reserve system in the US on the basis of the decision made by the Central Bank, which is the Bank of England, the issue of money and the loan is managed. These banks are operated as separate branches. The money held by these financial institutions is available for the London cash market system where short -term loans are issued. Participants in the market include institutional investors such as insurance companies, corporations and privacy creditors.

Throughout U.K, a discount house or bill of broker, is a company that participates in Ton Bill Market. For example, he buys various financial products with a discount, including the acceptance and commercial paper of the banker. This institution could be involved in the request for cash register accounts that are issued by JMThe éne of the UK rule.

For example, governments could issue a short -term debt with a specific nominal value. The discount house could participate in the account market by applying for this Treasury tool for a little less than the amount of nominal value. Meanwhile, the government will gain access to some money and profits from the discount house from the difference in the price between the nominal value and the amount of purchase.

Liquidity on the Bill market concerns the easy and efficiency to which cash registers can be traded. This can be measured on the basis of a price that has been paid for a debt tool or offer, and the values ​​for which the same financial securities are sold, which is the price of the application. The difference between the two components is spread and provides market participants to feel how the Likvinice market is currently.

The account market is an arena where debt transactions occur. For example, in response to an extension of a loan or the items foundThe loan may be issued to the debtor. This document includes details, such as the expiry date of the loan and the total amount due to the creditor. These credit transactions usually have a short -term nature and expire for months.