recovering economist
[This is part of the series: The Complete Guide To Economics 101.]
What are money market assets?
Money Market assets are financial assets that have a short-term maturity.
This maturity length can last anywhere from a few hours up to one year.
And the brunt of money market trading happens between large financial institutions.
The most recognizable instruments bought and sold in the money market include:
[This is part of the series: The Complete Guide To Economics 101.]
What are bank excess reserves?
Bank Excess Reserves are deposits that a bank holds in reserve that are in excess of the bank’s reserve requirement.
Take, or instance, a bank with $100 million in deposits.
And reserve requirements of $10 million.
This bank’s excess reserves would be all deposit reserves kept by the bank over $10 million.
So if total reserves are $12 million, in this case, excess reserves are $2 million.