International Banks in the Money Market
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Authors
Arnett, Adam
Issue Date
1989
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
The objective of this paper is to determine the
international banks' economic impact on the Money Market.
In order to do this one must first understand the Money
Market instruments, participants, and how the U.S. and
international banks fit into the picture. In addition to the
research I have done explaining facts of the Money Market, I
have included information gathered from personal work
experience with an international bank's Money Market
operations.
As a result of research and experience, it can be
determined that T-Bills are the largest and safest Money
Market instrument. They do, however, offer the lowest
interest rates. Commercial Paper is the second largest and
offers higher interest rates than the T-Bill. The
Eurodollar, which offers the highest interest rates, often
has the most risk. Commercial banks and corporations are
the largest participants in the Money Market and the Federal
Reserve determines the level for the rates with the use of
Federal Funds.
The U.S. international financing market is the most
dominant in the world. But recently, West Germany's
appreciating deutschemark and increasing investment abroad
and Japan's internationalization of the yen and investment
abroad pose a serious threat to the U.S. dominance in the
international financial markets.
Description
vi, 54 p.
Citation
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.