What is the Ministry of Finance's cash market?
The term "Cash market of the Treasury" can be used in two different ways. The first sense concerns the type of monetary market issued by the Ministry of Finance of the United States, the Ministry of Finance or T-Bill. In the second sense, it may refer to the mutual fund of the money market, which is based solely on the securities of the Treasury. In both cases, the Ministry of Finance's cash market is accessible to investors at all levels, from individuals to large institutions, and treasures are known to be highly reliable, although they do not always work very well. A number of different types of securities are exchanged on the money market, but all share the features of maturation within one year and are generally of highly liquid nature. Investors can get to the money market by purchasing and selling securities by money market or investing in a mutual fund in the cash market, in which funds from many investors are associated with the purchase of securities on the money market. The advantage of investing in the money market JE that is a very low risk, although the return rate is slower than the stock market rate.
The Ministry of Finance's cash market is a debt obligation issued by the Ministry of Finance of the United States. When the Ministry of Finance needs to raise funds, it sells T-Bills, with people pay part of the nominal value and the Ministry of Finance later pays the nominal value for T-Bill. T-Bills normally matures in three months, making them a classic short-term investment. People can negotiate a price that pays for their T-Bills in the bid process, and most people seek to reduce the amount they pay for maximizing their return when the Ministry of Finance buys T-Bill back.In the case of a mutual fund of the Ministry of Finance, the Fund's mutual fund uses participants to buy securities of the treasury exclusively. This type of mutual fund is highly reliable because the ministryStVO finance will have good on its debts, but the return rate may be continuously low, especially in a poorly executive economy. The return rate of up to 0.01% can be observed in difficult economic times, which may not be done in very large earnings for individual investors with a limited amount of money for investment.
People who are considering investing in the security of the treasury, whether directly or indirectly, should assess the rate of return. The advantage of such securities is that because they are short -term, they can be a good place to park money for several months when other types of investment are risky. The Ministry of Finance's money market will earn at least some money, rather than income at all, and investors can be sure they will not lose their investment while they are thinking about where they want to put their money Next.