essay on money market

Essay on Money Market

Students are often asked to write an essay on Money Market in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

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100 Words Essay on Money Market

What is the money market.

The money market is a place where people and companies can borrow or lend money for a short time. It’s like a market where instead of buying and selling fruits or clothes, people deal with money. Banks, governments, and other big groups use the money market to manage their cash needs.

Types of Money Market Tools

There are several tools in the money market. Some examples are treasury bills, which are like IOUs from the government, and certificates of deposit, which are like saving accounts in a bank that you promise not to touch for a while.

Importance of the Money Market

The money market is important because it helps keep the financial system stable. It makes sure there is enough cash flowing in the economy so that businesses can run smoothly and people can get loans when they need them quickly.

Risks in the Money Market

Even though the money market is for short-term and is considered safe, there are still some risks. Sometimes, the people or groups who borrow money might have trouble paying it back. But these risks are smaller compared to long-term investments.

250 Words Essay on Money Market

The money market is a part of the financial world where people and organizations can borrow or lend money for a short time. It is like a big marketplace, but instead of buying and selling things like toys or books, people deal with money. This market is important because it allows governments, businesses, and banks to manage their money needs for short periods, usually less than a year.

Types of Money Market Instruments

In this market, there are special tools called instruments. These include treasury bills, which are like promises from the government to pay back money it borrows from investors after a short time. There are also certificates of deposit, which are like saving accounts in a bank that earn a little bit of extra money over a short time. Commercial paper is another instrument, which is a way for companies to get money quickly by selling short-term IOUs to investors.

Why is the Money Market Important?

The money market is very important for keeping the economy stable. It helps banks have enough money to give to people who want to take out loans. It also allows the government to manage its cash flow and make sure it has enough money to pay for its activities. For everyday people, the money market keeps the value of money steady, so when we buy things, prices don’t change too much from day to day.

In summary, the money market is a vital part of the financial system. It helps people and organizations with their short-term money needs and keeps the economy running smoothly. Even though it might sound complex, it’s just about borrowing and lending money for a little while.

500 Words Essay on Money Market

Imagine a big marketplace, but instead of buying and selling fruits and vegetables, people are trading with money. This place is called the money market. It’s a part of the financial world where people and companies with extra cash lend it to those who need cash quickly. This lending and borrowing happen for a short time, usually less than a year.

Who Uses the Money Market?

The money market is used by many different people. Governments, businesses, banks, and regular folks like us can all be part of it. For example, if a government needs money to pay for something right away, they can borrow it from the money market. Or, if a business is waiting to get paid for its services but needs money now, it might use the money market too.

In the money market, people don’t give out cash directly. They use special tools called instruments. These are like promises or IOUs. Some common types are Treasury Bills, which are safe promises made by the government, and Certificates of Deposit, which are like time-based savings accounts in a bank.

The money market is important because it helps keep the financial system running smoothly. It makes sure that there is always enough cash available for those who need it. This helps businesses grow and governments to operate without running out of money. Also, it’s a safe place for people and organizations to put their extra cash, where it can earn a little bit of interest before they need to use it.

How Does the Money Market Stay Safe?

The money market is generally considered a safe place to put your money. This is because the loans are for a short time and are usually backed by trustworthy promises. Also, the people who lend money in the money market often spread their money around, lending a little bit to many different borrowers. This way, if one borrower can’t pay back, it doesn’t hurt the lender too much.

Interest Rates in the Money Market

The interest rate is like a rental fee for borrowing money. In the money market, these rates can change every day. They depend on how much money is available and how many people want to borrow it. When lots of people want to borrow money but there isn’t much to lend, the interest rate goes up. When there’s a lot of money available but not many borrowers, the rate goes down.

The money market is a crucial part of our financial system. It’s like a community pool of money that helps make sure everyone can get the cash they need when they need it. It’s safe, useful, and helps everyone from big governments to small businesses and even individuals to manage their finances better. Understanding the money market can help you see how money moves around in the world and how it can work for you.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

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Happy studying!

138 Research Topics on Money - Essay Topics, & More

Welcome to our list of money essay topics! Here, we’ve collected the most interesting research topics about money, titles for essays, presentation ideas, and even samples. Use them to get inspired!

🏆 Best Essay Topics on Money

✍️ money essay topics for college, 👍 good money research topics & essay examples, 🎓 most interesting research topics about money.

💡 Simple Money Topics to Write About

❓ Research Questions About Money

Can Money Always Buy Everything You Want?
The Philosophy of Money by Georg Simmel
Comparison Between Love and Money in Life
Why Men Spend More Money Than Women?
Time Value of Money in a Medical Organization
Stealing Money From Corporations
Metaphysical Secrets of Manifesting Money Abundance
How to Teach Children to Value Money The key point of teaching children the value of money is to provide them with an example of how to maintain proper habits and behavior.
Aspects of Money Management The paper states that money management is a critical skill, which will help improve the financial well-being and reduce the stress associated with money.
Money Issues in Romantic and Marital Relationships Money often causes issues in relationships because of changing roles in the household, increasing expenses, financial infidelity, and lack of financial goals.
Tradesmart Inc.: The Money-Back Guarantee Tradesmart Inc. is a fairly broad marketplace, which, in addition to low prices, also provides customers with a unique policy of returning money for the goods.
History and Role of the Money Money is any commodity or token that serves as a medium of exchange that is legally and socially acknowledged in payment for services and goods and in the disbursement of debts.
Bitcoin: The Use of the Digital Money The paper has elaborated Bitcoin is used, its features, and its impacts on society. The digital currency has features similar to other currencies, such as durability.
Money: History, Functions and Types Money is any commodity or token that serves as a medium of exchange that is legally and socially acknowledged in payment for services and goods and in the disbursement of debts.
Financial Planning. Money Management Skill Financial literacy can be defined as knowledge about financial planning and management that allows making reasonable choices about money spending and saving.
Money Issues in a Relationship In the contemporary world, both men and women contribute equally to the economy of the household. This has changed the household role of men from being the sole breadwinners.
Money to Charity: Moral Differences Many families across the globe continue living below the poverty line and cannot meet their basic needs like food, health, or even sleep.
“Money, Greed, and God: Why Capitalism Is the Solution and Not a Problem” by Jay Richards In his book “Money, Greed, and God,” Jay Richards, an American analytical philosopher, seeks to address the most common myths about capitalism.
Money and Expenditures: Personal Opinion This article is the author’s account of her relationship with money, financial commitment, and spending planning.
Lloyd’s Tsb Bank Is Under Fire for Money Laundering Offense This research article discusses the role of the bank, either knowingly or unknowingly, in laundering the money obtained by cheating.
Monetary Theory and Policy. Money in the Utility Function Money is an asset, making positive or negative or some other functional effect. Goods, demands, propositions are constantly dependent on the money supply.
Art’ and Money Relations While the cultural value of many artworks exceeds material dimensions, it is hard to imagine how the masterpieces would be preserved without being involved in commodity-money relations.
Aspects of Functions of Money Money is one of the vital tools in society. The paper looks at the feasibility of money-stably completing these functions in the near future.
Is Money a Virtue or Evil: Discussion The study will have to document how money has been used in good ways through spreading the gospel and how it has been used in evil ways for personal or selfish purposes.
Governmental Organizations: Value for Money Audits and Performance Audits Value for Money audit and performance audit have different objectives and complement each other, but neither is sufficient on its own to audit an organization’s performance.
Foundations and Applications of the Time Value of Money This paper intends to discuss the concept of time value of money. The goal is to show that current cash flow is valued highly compared with future cash flows.
Illegal Immigrants – They Are Money The paper looks at the issue of “illegal immigrants” to the US from the perspective of their value to businesses as cheap labor and as a market for their goods like credit cards.
Forecasting and Time Value of Money Time value of money is a valuable instrument that helps comprehend the value of a currency in relation to a given period and significantly impact investing decision.
Analysis of Anti-Money Laundering Strategies Money-laundering has been a significant problem for Canada because such a practice enables and facilitates many criminal activities such as drug trade, fraud or even global terrorism.
Time Value of Money and Interest Rate Risk Time value of money (TVM) is a financial concept, which implies that money available to an individual or a company at the present time is much more valuable.
Money and Relationship in King Lear by Shakespeare King Lear, one of Shakespeare’s most well-known tragedies, is a nihilistic story of destruction, money, and power conflicts that was originally performed in 1606.
Personal Finance: Turning Money Into Wealth There are many different bond kinds, and each has benefits and drawbacks for the parties involved. Municipal and corporate bonds will be reviewed in this session.
Divine Currency: The Theological Power of Money in the West Money in Christianity is a dangerous matter, which requires careful and proper management to stay on the path of Christ.
Politics, Money, and Free Expression In 2011, the Supreme Court “decided that corporations and unions could contribute an unlimited amount of money to political campaigns.”
Inflation and Increase in Money Supply Even though the increase in the money supply might stimulate the economy, it is a dangerous strategy, and the Federal Reserve has to act with caution.
The Federal Reserve System and the Money Supply The Federal Reserve (FR) has three main tools to control the money supply in the economy: the discount rate, open market operations, and reserve requirements.
Social Work Assignment: Gender, Money, and the Charity Organization Society Throughout the history of its development, the sphere of social work has witnessed the work of various contributors dedicated to achieving social equality.
Money, Happiness, and Materialism Correlation The paper concludes that happiness doesn’t depend on material goods, and it should be understood that respect and empathy are superior to any material wealth.
Daily Budget Cutting: Methods of Saving Money Nowadays, there are many more possibilities to spend additional money than in the past. Consequently, people should be more attentive to their budget and spending structure.
Financial Management: Where Does the Money Go It is increasingly possible to hear about the importance of financial literacy in the modern world, which largely boils down to thoughtful money management.
How Money Laundering Practices Violate Financial Ethics Corruption is one of the biggest problems a government can face, and in this blog, the author aims to explain how money laundering practices violate financial ethics.
Money as a Means Rather Than a Result of Achieving Happiness The paper states that one can note that money is a tool that allows buying things that make a person happy, but money itself does not bring happiness.
Money Laundering, Corruption and Terrorism Issues Money laundering, corruption and terrorism are rife in East and Southern Africa is largely attributed to the abject poverty that at times seems to be endemic.
Firms Raising Money Through Debt vs. Equity Debts as a source of operating funds can be from within or outside the company specifically individual borrowings or banks.
Eastern and Southern Africa Anti-Money Laundering Group Money laundering, corruption and terrorism are rife in East and Southern Africa. This phenomenon is attributed to the abject poverty that seems to be endemic in this region.
This American Life: Toxie Asset by Planet Money When recounting the story of Toxie, the reporters explain how “she” came to be, and how her life began at the peak of the housing market, progressed through the years.
Montley Fool Money Guide: A Book’s Review It is an educative book that gives an insight into saving, spending, and investing. The author tries to bring out the foolish things people do with their money.
Money Supply in the United States This essay discusses the money supply, what constitutes it, and the current supply in the US. It will also examine how the COVID-19 pandemic affected the M2 supply in the country.
Finance, Currency Alternatives, and Money in the Bible The currency used in all countries nowadays is an example of fiat money, meaning that it lacks intrinsic value.
”Money Supply” Article by Enam Ahmed Analysis In this article, Enam Ahmed explains why central banks should use the Divisia approach to measure the effectiveness of monetary policies.
York College Medical Center Managing Grant Money Despite numerous positive effects that financial recognition of the employees could bring to the general state of the center, free healthcare services are of higher priority.
Men, Women & Money – How the Sexes Differ with Their Finances’ Article Review? Amy Livingston’s article Men, Women & Money – How the Sexes Differ with Their Finances provides comparative gender-related research.
Can Money Buy Happiness? This article analyzes Sandy LaMotto’s research that money brings happiness and that selfish spending is associated with a good mood.
What Does Money Have to Do With It? The policy-oriented toward providing judges with the information on the costs of sentencing types can be discussed as rather controversial.
The Money Factor in Drug and Alcohol Treatment A vast number of individuals fail to take up drug treatment because they are unable to raise the money that is required to enroll in such a program.
Exchange Rate and Price: U.S. and Chinese Money The exchange rate quotation is derived by stating the number of units of term currency that can be bought in terms of the unit currency, which is also known as the base currency.
Entrepreneurship. Money in the Resource Equation Money is the least important part of the resource equation because starting a new business requires an entrepreneur’s ability to take risks.
Macroeconomics: Monetary Policy in the United States There are various monetary policy tools which can be used by the fed in order to achieve its desired policy objectives.
“Illegal Immigrants: They’re Money” by Rodrigez The focal point of the paper is to present a critical evaluation of Gregory Rodrigez’s article Illegal Immigrants: They’re Money.
“Rivers of Blood and Money” Article by Burden The article “Rivers of Blood and Money” by Burden takes a different approach when analyzing the issue of anti-Semitism and events before and during the Holocaust.
Money and Happiness in Economic Theories The pursuit of additional wealth and income usually becomes addictive thereby reducing an individual’s time with their family members and friends and limiting their social life.
Money and Politics in Healthcare Reform Having initiated the healthcare reform, President Obama met stiff opposition to the insurance and pharmaceutics lobby. It would be disadvantageous and made them lose revenue.
How Can American Cities Raise More Money? One of the main ways through which urban governments in the United States can avert revenue problems is through prudent reduction of services that they currently offer.
“Where Does the Money Go?” by Scott Bittle and Jean Johnson In their book Where Does the Money Go?, Scott Bittle and Jean Johnson focus on the growing national debt of the United States and examine inefficiencies that led to the crisis.
World Money: From the Eurodollar to the Sinodollar
Treasury Operations, Bank Credit, and the Money Market
Working From Home Can Earn You Money
The Money Demand Function for the Euro Area: Some Empirical Evidence
Trade Credit and the Money Market
U.S. Domestic Money, Inflation and Output
The U.S. Money Market and the Term Auction Facility in the Financial Crisis of 2007–2009
Varying the Money Supply of Commercial Banks
The Uses of the Money in the Six Century B.C
Tight Money Policies and Inflation Revisited
Working Through the Distribution: Money in the Short and Long Run
Utilizing the Time Value of Money
Women Are Working and Spending Money Same as Men
Wall Street: Money Never Sleeps
Velocity and Money Growth Variability: Evidence From Japan
The Swiss Sovereign Money Initiative
Velocity and the Variability of Anticipated and Unanticipated Money Growth in Malaysia
The Translog Utility Function and the Demand for Money in the United States
Why Money Talks and Wealth Whispers: Monetary Uncertainty and Mystique?
Triodos Bank: Conscious Money in Action
Transactions Costs, the Wage Rate, and the Demand for Money
The Obsession With Money and the New Consumer Culture of the 1920s
U.S. Banking and Money
The Relationship Between Government Deficits, Money Growth and Inflation
Understanding How Money Works

Simple Money Topics to Write About

The Rules for Saving Money by Consolidating Debt
Thinking About Monetary Policy Without Money
The Relationship Between Economic Growth and Money Laundering
Work Can Provide More Than Money
Velocity and the Growth of Money in the United States, 1970-1985
Trade, Money, and Employment in Intertemporal Optimizing Models of Growth
Unemployment, Real Wages and the Money Supply in Australia
The Money Demand and the Loss of Interest for the Euro in Romania
Wealth, Financial Liberalization, and the Demand for Money in Japan
The Relationship Between Mobile Money Technology and Financial Development
U.S. Narrow Money for the Twenty-First Century
Working for Little Money: Does Germany Need a Minimum Wage?
Where Has the Money Gone? The Case of Value Added Tax Revenue Performance in Indonesia
The Trouble With Money: A Prescription for America’s Financial Fever
Why Most PPC Advertisers Lose Money?
Unconventional Monetary Policy and Money Demand
Winning Money Online With Web Analytics
Utility Function Transformations and Money Illusion: Reply and Further Results
The Relation Between Money, Income and Prices in South Africa
York Times Victims Money Fund
Why Isn’t Money Considered Capital in Economics?
Tight Money and the Sustainability of Public Debt
Wealth and How Money Influences People’s Lives
Tight Money-Tight Credit: Coordination Failure in the Conduct of Monetary and Financial Policies
Can Money Buy Happiness and Freedom?
Does Money Equal Power in American Politics?
Does Money Improve Academic Achievement?
Does Ones Success Depend on the Amount of Money a Person Earns?
What Are Some Fundamental Strategies for Saving Money?
How Does Federal Reserve Control the Money Supply?
How Does Inflation Affect the Function of Money?
How Does Shakespeare Present the Issues of Love and Money in His Plays?
How Does the RSPCA Persuade Us to Part With Our Money?
How Money and Appearance Control the World?
How Money Changes the Way We Think and Behave?
How Money Has Become the Enemy of Our Society?
How Money Was Created and the Basic Political Ideology of Money?
How Much Money Does California Get From the Federal Government?
What Are the Anticipations and the Nonneutrality of Money?
What Is the Role of the State and the Hierarchy of Money?
What Alternative Approaches to Money and Growth Are There?
What Are the Statistical Mechanics of Money?
What Is the Influence of Money on Medical Science?
What Is the Development of a Money Attitude Scale?
Will Money Increase Subjective Well-being?
What Is the Structure and Performance of the Money Management Industry?
Why Is There a Difficulty With the Optimum Quantity of Money?
What Are the Distributions of Money in Model Markets of Economy?
What Are the Monetary Policy Implications of Digital Money?

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These essay examples and topics on Money were carefully selected by the StudyCorgi editorial team. They meet our highest standards in terms of grammar, punctuation, style, and fact accuracy. Please ensure you properly reference the materials if you’re using them to write your assignment.

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Money Market Vs. Capital Market: An Overview

The Money Market

The capital market.

Frequently Asked Questions

The Bottom Line

Investing Basics

Money Market Vs. Capital Market: What's the Difference?

Money Market Vs. Capital Market: An Overview

The money market and the capital market are not single institutions but two broad components of the global financial system.

The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year.
The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors.

Together, the money market and the capital market comprise a large portion of what is known as the financial market.

The money market is a good place for individuals, banks, other companies, and governments to park cash for a short period of time, usually one year or less. It exists so that businesses and governments that need cash to operate can get it quickly at a reasonable cost, and so that businesses that have more cash than they need can put it to use.

Key Takeaways

The money market is a short-term lending system. Borrowers tap it for the cash they need to operate from day to day. Lenders use it to put spare cash to work.
The capital market is geared toward long-term investing. Companies issue stocks and bonds to raise money to grow their businesses. Investors buy them to share in that growth.
The money market is less risky than the capital market while the capital market is potentially more rewarding.

The returns are modest but the risks are low. The instruments used in the money markets include deposits , collateral loans, acceptances, and bills of exchange. Institutions operating in the money markets include the Federal Reserve, commercial banks, and acceptance houses.

When a company or government issues short-term debt, it's usually to cover routine operating expenses or supply working capital, not for capital improvements or large-scale projects.

About Liquidity

The money market plays a key role in ensuring that banks, other companies, and governments maintain the appropriate level of liquidity on a daily basis, without falling short and needing a more expensive loan and without hoarding excess cash that isn't earning interest.

Individual investors may use the money markets to invest their savings in a safe and accessible place. Many choices are available, including mutual funds that focus on state money market funds, municipal funds, and U.S. Treasury funds. Many of the government funds are tax-free. A money-market fund also can be opened at most banks.

The capital market is where stocks and bonds are traded. Its movements from hour to hour are constantly monitored and analyzed for clues as to the health of the economy at large, the status of every industry in it, and the consensus for the short-term future.

The overriding goal of the companies institutions that enter into the capital markets is to raise money for their long-term purposes, which usually come down to expanding their businesses and increasing their revenues. They do this by issuing stock shares and by selling corporate bonds.

Primary and Secondary

The capital market is roughly divided into a primary market and a secondary market. A company that issues a round of stock or a new bond places it in the primary market for sale directly to investors or institutions. If and when those buyers decide to sell their shares or bonds, they do so on the secondary market. The original issuer of those stocks or bonds does not immediately benefit from their resale, although companies certainly have an interest in the price of their stock shares rising over time.

The capital market is by nature riskier than the money market and has greater potential gains and losses.

What are four examples of money market instruments?

Examples of money market instruments include certificates of deposit (CDs), commercial paper, Treasury bills (T-bills), and banker's acceptances.

What are the types of capital markets?

Capital markets can be broken down into primary and secondary markets. The primary market is where stocks and bonds are first issued to investors. The secondary market, on the other hand, is where securities that have already been issued are traded between investors.

What are 3 types of capital market?

Capital markets can include the stock market, the bond market, and the forex market . Each of these markets trade a different asset class.

The money market and capital market are often talked about. Together, they make up a large chunk of the global financial market.

The money market is where short-term financial instruments with a holding period of a year or less are traded. It essentially works as a short-term lending and borrowing platform for its participants, with investors in this market either gaining access to funds or earning interest on them. The capital market is also a venue where people make money but has different characteristics. In this market, there are entities that issue shares, bonds, or other long-term securities to raise capital and grow their businesses, and those who invest in these instruments, hoping to turn a profit.

The key distinguishing factors are time and rewards. Money markets are made up of short-term investments carrying less risk, whereas capital markets are more geared toward the longer term and offer greater potential gains and losses.

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Essay: Money markets

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Money market refers to the investment in short term because the assets which are bought and sold with maturities within a year. Normally, they can be converted into cash easily. The examples of money market’s instruments are bank deposits, certificates of deposit, interbank loans, money market mutual funds, commercial paper, treasury bills, and securities lending and repurchase agreements (repos). (Dodd, R., 2012). Interbank loans are loans between banks which are not secured by collateral. Commercial paper is a promissory note as an unsecured debt that issued by highly rated banks and some large non-financial corporations. Some safer investments in the money market are treasury bills and repurchase agreements (repos). T-bills are securities issued by the government with maturities of less than a year as it is covered by securities laws while Repos are usually less than two weeks and often overnight. Besides that, money market mutual fund (MMMFs) is another instrument in money market which are securities offered by companies that invest in other money market instruments. Furthermore, asset-backed commercial paper (ABCP) is another money market instrument which is safer compare to the ordinary commercial papers because it is secured by the underlying assets. During financial crisis, these money market instruments are greatly affected and show a big downturn. They are helped by the country treasury and the federal reserved. These agencies created special lending for them to overcome the crisis. Today, some of the money market like ABCP and REPO has shrunk dramatically. (Dodd, R., 2012). The interest rates and calendar-time effects do affect both the MMFs and bank deposits cash flow for either the institutional or retail investors. (Kotomin,V., et al., 2014) The research found out that institutional money fund investors appear to take advantage of arbitrage opportunities created by the MMFs using the amortized cost valuation technique. A key test variable is used which call ‘Spread’. It is used to measure the direction and magnitude of changes in short-term interest rates and thus capture potential arbitrage opportunities in the money markets arising due to recent changes in interest rates. When Spread is positive, investors would earn a higher rate of return in the alternative investment but when Spread is negative, investors will earn a higher return in MMFs. This shows Spread and MMF flows have a negative relation. (Kotomin,V., et al., 2014) The research on calendar-time effect found out that calendar time effects make money market investors are willing to forego some return to strategically time their cash flows to meet calendar-based cash obligations. Both retail and institutional MMFs moved cash out of MMFs before calendar break points associated with cash obligations and move back into MMFs following the break points. The cash which taken out from the MMFs tend to flow into bank demand deposits. (Kotomin,V., et al., 2014). The average maturity of the fund will be shortened in order to increase the yield faster if the interest rates are expected to increase and vice versa. Therefore, managers who possessed this ability to anticipate forthcoming movements in the market are able to address the adverse impact and exploit the opportunities available. (Mansur, I., Odusami, B., & Nasseh, A, 2011) The data being used in this study are weekly 90-day T-bill yields and weekly one-month AA financial CP rates. Besides that, they also obtained the weekly weighted average maturity (WAM) on all taxable MMMFs. The results show that weekly changes in WAM have a negative correlation with changes in CP yields and there is no relationship between changes in WAM and changes in T-bill yields. Then, further investigation is made to find out the relationship between interest rates and WAM by applying Granger causality tests. The results showed that the T-bill market is highly efficient. This is because investors cannot gain any deeper understanding by analyzing the maturity structure of MMMFs for information that is not reflected in the T-bill rates.(Mansur, I., Odusami, B., &Nasseh, A, 2011). There are two theories for bank run their subject of academic and regulatory which are Diamond and Dybvig and the second theory is run in rationally driven by information. The prime money fund is category to give the explanation about covariates of the money fund run, because this category is by far and is most effective by the money fund crisis. The institutional investor moved their money in the same time or later one day in or out of prime money market, especially in the complex within same fund. Besides that, we also find that investment is sensitive no easy to liquidity the money fund holding; correlated flow less happen money fund with greater level of security mutual period is short ‘term. In the other hand, the money fund runs at ‘deep pocket backing’ ,this is indicate with investor infer the fund is guaranteed by their management company and the institution investor, for the most part, moved their money into the U.S government . According to Fecht, Gr??ner and Hartmann (2007) banks contribute to inter-regional risk sharing. They recommend that the risk sharing depends on the size of the interbank market through secured and unsecured interbank trading. Using LIBOR for some currencies, Kotomin et al. (2008) mentioned the liquidity preference at the end of the year or trimester is the main factor that drives the interest rates’ behavior on short term. Cerrato et al. (2010) discovered that the Euro zone monetary policy is transmitted into CEE interest rates by the framework of the influence of global monetary shocks. Besides, they discovered the presence of structural breaks at the beginning of financial crisis for almost all rates which present long memory. The long run equilibrium relationship between the overnight rates and the corresponding 1 month and 3 month rate was found. From Gregory-Hansen test, these are valid in the presence of a structural break in integrating relationship between the interbank money markets. The risk-taking behaviour of money market funds during the financial crisis of 2007-2010 was examined by Kacperczyk, M. and Schnabl, P. (December 2012). Starting at August 2007, money funds experienced an extension in their risk-taking opportunities. The analysis shows that ‘fund flows are extremely responsive to past returned and one-standard-deviation increase in fund returns raises annualized fund assets by 46%.’ which makes money market funds had strong incentives to take on risk. (Kacperczyk, M. and Schnabl, P.) The characteristic that predicts risk taking is if fund sponsors has interests in businesses (business concerns) who will reduce risk and a fund sponsor’s financial strength who found that greater financial strength increases risk taking. Other (unobserved) sponsor characteristics, like quality of risk management, risk aversion, investment style, or access to private information would directly affect risk taking. In September 2008, the government introduced unlimited deposit insurance, which effectively replaced the sponsors’ role in providing support that makes the differences in risk taking become smaller. Money market funds lack safety relative to other safe instruments because when the opportunity increases the incentives to take on risk is high but they are vulnerable to runs once the risk materializes. The demand deposit contracts in open-end mutual fund are same with the bank which can cause the investor withdraw the money from time to time. The higher return was provided by evidence that pursuit to motivate the investors reacting to bad by withdrawing the money. The fund can outperform from the other fund as long as liquidity in the higher market by investing illiquid asset. When investing less liquid asset, the narrow structure of money market fund and make them weak to run. The study also included the risks which involve in investment in illiquid assets when the open-ended structure is involved. Besides that, it was present the run are possible in the money market. The financial intermediaries were given to reform the regulation of the money market fund in U.S and Europe to archive the target for stability the money market fund. Before financial crisis, there only have limited information about asset composition of German money market fund was able to the public and not standardized. The insurance provide with a fund issuer might play on the important role in the stability of money market fund. Money market also is a set large remain stable in the U.S where an implicit insurance is provided. The sterling overnight money market is important to implement the monetary policy. The development of sterling overnight markets can be sum up into an increased sensitivity of bank liquidity risk and credit risk, introduction of the ‘floor’ system; reduced volatility in overnight interest rates after introducing floor’ system, a drop and growth in unsecured and secured money market activity respectively, introduction of international prudential liquidity regulations andchanging incentives to arbitrage overnight interest rates.(Jackson, C., &Sim, M, 2013). The Bank has introduced a ‘floor system, whereby all reserves account balances were recompense at Bank Rate. Banks preferred to transact among themselves instead of using the money market to manage liquidity which shows that they are more sensitive to credit and liquidity risk. The unsecured interbank trading has dropped drastically after the introduction of the floor system and increase in reserves. After the reinforcement of prudential liquidity regulation, banks have dramatically reduced their use of wholesale unsecured market. They use a longer-term funding combine and hold reserves at the central bank to manage liquidity needs (Jackson, C., &Sim, M, 2013). The markets for federal funds and Eurodollars are the two core components of the dollar money market which relate for both financial analysis and the execution of monetary policy. The degree of integration of the federal funds and the Eurodollar markets is also important for the implement and transmission of monetary policy. This paper provides a detailed analysis of the extent of integration of the markets for federal funds and for Eurodollar deposit by using a new set of transactional-level data which gained from one of the largest U.S based dollar markets brokers and detailed empirical modelling of the daily and intra-day behaviour of federal fund and Eurodollar interest spread. Besides that, this paper also significant the liquidity effects of money market. The higher money market trading volume lowers the volatility of spreads which keeping federal funds and Eurodollar yields more close. Furthermore, daily news on money market conditions as captured by results of morning Federal Reserve open market auctions are absorbed quickly within a couple of hours into yield spreads was shown. Close integration of federal funds and Eurodollar trading has two immediate implications which are from the standpoint of financial analysis and the standpoint of policy design and analysis of the transmission of monetary policy.

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Essay On Money: 100, 250 Words Samples

Updated on
Nov 9, 2023

Why do you think money is important? Can we live without money? Does money have its own value? What’s the difference between hard money and digital money? When we plan on buying something, we have to pay a certain amount. Let’s say you want to buy a wristwatch worth $50. How do you compare that commodity with money? Do they have equal value? Is there any authority that states the value of money ? These and several other questions about money can make one wonder why money is given so much importance. Let’s go in-depth with an essay on money and find answers to all these questions.

Table of Contents

1 What is Money?
2 Why is Money So Important?
3 Essay on Money in 100 Words
4 Essay on Money in 250 Words

What is Money?

According to Wikipedia and Oxford Dictionary, Money is simply a medium of exchange. Some even consider money as one of the most important resources , which is used to make transactions of goods, services, or repayment of debts within a specific country or socio-economic context.

Money can have various forms, coins and banknotes in physical form, and electronic balances in bank accounts in digital forms. Money serves as a unit of account, facilitating the measurement of value in terms of prices, and as a store of value, allowing individuals to save purchasing power for future use.

Learn Why Financial Literacy is Important for Students.

Why is Money So Important?

What makes money such an important resource is its acceptance across the globe in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. Here are several reasons stating the importance of money.

Money serves as a convenient medium of exchange that facilitates the buying and selling of goods and services, making transactions more efficient than barter systems.
It provides a standardized unit for measuring the value of goods, services, and assets, allowing for easier comparison and assessment of value across different items.
Money enables individuals and businesses to store wealth and purchasing power over time, facilitating savings and investment for future needs and goals.
A stable and reliable monetary system encourages investment, trade, and economic growth, fostering overall prosperity within an economy.
By using money, individuals and businesses can avoid the high transaction costs associated with bartering and the inefficiencies of non-monetary exchange systems.
The use of money encourages specialization in the production of goods and services, leading to increased productivity and efficiency within an economy.
Money is essential for the functioning of financial markets, banking systems, and investment activities, which are crucial for the allocation of resources and capital within an economy.

Essay on Money in 100 Words

El dinero or money is used as a medium of exchange, unit of account, and store of value. It facilitates trade, allowing for the smooth exchange of goods and services, while also enabling efficient allocation of resources and encouraging economic growth. As a unit of account, it provides a standardized measure of value, simplifying the comparison of different goods and assets.

Moreover, money acts as a store of value, allowing individuals to save and plan for the future. Its role in reducing transaction costs, enabling specialization, and supporting complex financial activities highlights its significance in the functioning of contemporary economies.

Essay on Money in 250 Words

Modern economics is heavily dependent on money or we can say that money is the pillar of modern economies. As a medium of exchange, it simplifies trade by providing a universally accepted method of payment for goods and services, eliminating the inefficiencies and limitations of barter systems. Its characteristic fosters the development of complex market systems, encouraging specialization and the efficient allocation of resources.

Apart from being a medium of exchange, money functions as a unit of account, providing a standardized measure of value that enables individuals to compare prices and evaluate the worth of different goods and services. This uniformity in valuation streamlines commercial activities and allows for effective planning and decision-making in both personal and business contexts.

Money serves as a store of value, allowing individuals to save and accumulate wealth over time. This feature empowers people to prepare for future expenses, emergencies, or long-term goals, providing a sense of security and stability in an uncertain world.

In addition to its role in daily transactions , money fuels economic growth by facilitating investment, entrepreneurship, and innovation. Financial institutions utilize money as a tool to allocate capital efficiently, enabling the development of new businesses, industries, and technologies that contribute to overall economic prosperity.

Money plays multiple roles in our lives; it is a physical or digital representation of currency; it is a fundamental pillar of modern economies, underpinning the intricate web of commercial activities, financial systems, and societal well-being. Its importance lies not only in its tangible properties but also in the complex functions and structures it supports within the global economic framework.

Money is globally accepted as a medium of exchange in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. To buy goods or services, you are required to pay a certain amount, which is fulfilled by paying money.

To write an essay on money, you need to highlight the key aspects of this essential resource. The multiple transactions in which money is used in our day-to-day lives make money an important part of our lives. Give examples of how money can change our lives and what would happen if we were out of money. Highlight the latest trends in the financial sector and what governments are doing to save our money from inflation.

Here are the 5 strongest currencies in the world: Kuwait Dinar (KWD), Bahraini Dinar (BHD), Omani Rial (OMR), Jordanian Dinar (JOD), and Gibraltar Pound (GIP).

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Money and Banking. Financial Markets Essay

The issues of finance and economy are of vital importance for the existence of mankind. The recent events in the sphere of financial markets demonstrate the negative effects of various problems for all spheres of social life. This essay will focus on the four basic terms of finance – financial markets, risks, moral hazard, and adverse selection – in order to see their interrelations and practical occurrences in the recent situation in the New York Financial markets. The essay will examine the essence and the importance of the above-mentioned financial phenomena and see how their interrelation, especially in the negative context, can influence the state of things in society.

To start with, it is necessary to define the terms that are going to be discussed in this essay. First of all, the financial market needs definition because it is the basic tern for the other three. A financial market is a mechanism specially created by people that serves the needs of people to sell or buy various kinds of commodities, securities, and other items at low prices according to the transaction needs and market conditions.

Consequently, the terms “risk”, “moral hazard” and “adverse selection” are the reflection of different processes and phenomena that can occur in the financial markets. Risk is, in general terms, the possibility of getting a return on a transaction that will differ from the expected return level. This return level can be worse or better than expected and mean the negative or positive risk. The concept of moral hazard is closely connected to risk.

Moral hazard is a sub-type of risk because it is used to define the risk that a party to a contract acts in contradiction to it to get more profit than expected from the transaction. Finally, adverse selection is the process when persons or companies use the information that their partners do not have to benefit from the transaction or get insurances for large sums of money because of high possibilities of accident happenings and getting compensations.

The current situation in the New York financial markets and in the economy of the whole world demonstrates the importance of all the above-considered phenomena. Financial markets experience a severe crisis caused by the inability of certain huge banks to cover their liabilities and their subsequent bankruptcy. The index of bonds of basic companies fell over the last few days, and Dow Jones faced 220 points decrease.

This, according to Hulse (2008), was caused by the expectations of negative risks from possible transactions. In other words, entrepreneurs were reluctant to invest money because the return they might get was probably worse than they expected. Moral hazards also played a considerable role in the crisis because companies and individual people had no confidence in each other because of the sudden bankruptcies of banks that were not reported beforehand and were shocking for people who had their accounts in the banks (Jakson, 2008). As a result, according to Uchitelle (2008), the small businesses faced the lack of large-scale and long-term loans because the banks that survived the crisis were afraid of adverse selections made by the applicants and refused to credit them.

Thus, the whole picture of the situation in the New York financial markets is the synthesis of the notions of risk, moral hazard, and adverse selections. These phenomena became interconnected and caused the chain reaction started by the crisis in financial markets, continued by the risks and expected moral hazards, and completed by the desire of companies to be protected from the adverse selections that might be observed in the context of the crisis.

Hulse, C. “Pressure Builds on House After Senate Backs Bailout”. New York Times, 2008.

Jakson, T., Kramer, S. “Across America, Speaking out the economy”. New York Times, 2008.

Uchitelle, L. “Small Businesses Feeling the Chill”. New York Times, 2008.

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IvyPanda. (2021, September 23). Money and Banking. Financial Markets. https://ivypanda.com/essays/money-and-banking-financial-markets/

"Money and Banking. Financial Markets." IvyPanda , 23 Sept. 2021, ivypanda.com/essays/money-and-banking-financial-markets/.

IvyPanda . (2021) 'Money and Banking. Financial Markets'. 23 September.

IvyPanda . 2021. "Money and Banking. Financial Markets." September 23, 2021. https://ivypanda.com/essays/money-and-banking-financial-markets/.

1. IvyPanda . "Money and Banking. Financial Markets." September 23, 2021. https://ivypanda.com/essays/money-and-banking-financial-markets/.

Bibliography

IvyPanda . "Money and Banking. Financial Markets." September 23, 2021. https://ivypanda.com/essays/money-and-banking-financial-markets/.

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Home — Essay Samples — Economics — Money — Why Money Rules the World

Why Money Rules The World

Categories: Consumerism Money

About this sample

Words: 521 |

Published: Jan 31, 2024

Words: 521 | Page: 1 | 3 min read

Historical perspective, economic dominance, social influence, political control, environmental impact.

British Museum. "History of Money." https://www.britishmuseum.org/.
World Inequality Database. https://wid.world/.
American Psychological Association. "Consumerism and its discontents." https://www.apa.org/.
Center for Responsive Politics. "OpenSecrets: Data on Money in Politics." https://www.opensecrets.org/.
United Nations Environment Programme. https://www.unep.org/.

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Essay on Money for Students and Children

500+ words essay on money.

Money is an essential need to survive in the world. In today’s world, almost everything is possible with money. Moreover, you can fulfill any of your dreams by spending money. As a result, people work hard to earn it. Our parents work hard to fulfill our dreams .

Furthermore various businessmen , entrepreneurs have startup businesses to earn profits. They have made use of their skills and intelligence in getting an upper hand in earning. Also, the employee sector works day and night to complete their tasks given to them. But still, there are many people who take shortcuts to success and get involved in corruption.

Black Money

Black money is the money that people earn with corruption . For your information corruption involves the misuse of the power of high posts. For instance, it involves taking bribes, extra money for free services, etc. Corruption is the main cause of the lack of proper growth of the country .

Moreover, money that people having authority earns misusing their powers is black money. Furthermore, these earnings do not have proper documentation. As a result, the people who earn this do not pay income tax . Which is a great offense and the person who does this can be behind bars.

Money Laundering

In simple terms, money laundering is converting black money into white money. Also, this is another illegal offense. Furthermore, money laundering also encourages various crimes. Because it is the only way criminal can use their money from illegal sources. Money laundering is a crime, and the people who practice it are liable to go to jail.

Therefore the Government is taking various preventive measures to abolish money laundering. The government is linking bank accounts to AADHAR Card. To get all the transaction detail of each bank account. As a result, the government comes to know if any transaction is from an illegal source .

Also, every bank account has its own KYC (Know your Customer) this separates different categories of income of people. Businessmen are in the high-risk category. Then comes the people who are on a high post they are in the medium-risk category. Further, the last category is of the Employee sector they are at the lowest risk.

Get the huge list of more than 500 Essay Topics and Ideas

White Money

White money is the money that people earn through legal sources. Moreover, it is the money on which the people have already paid the tax. The employee sector of any company always has white money income.

Because the tax is already levied on their income. Therefore the safest way to earn money is in the employment sector. But your income will be limited here. As a result, many people take a different path and choose entrepreneurship. This helps them in starting their own company and make profitable incomes .

Every person in this world works hard to earn money. People try different methods and set of skills to increase their incomes. But it is always not about earning money, it’s about saving and spending it. People should spend money wisely. Moreover, things should always be bought by judging their worth. Because money is not precious but the efforts you make for it are.

Q1. What is Black Money?

A1. Black money is the money that people earn through illegal ways. It is strictly prohibited in our country. And the people who have it can go to jail.

Q2. What is the difference between Black money and White money?

A2. The difference between black money and white money is, Black money comes from illegal earnings. But white money comes from legal sources with taxation levied on it.

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Money Market Securities: Characteristics and Types

Introduction.

A capital market is defined as a market in which a government, a business organization, or a financial institution can accumulate funds to carry on its functions and long-lasting investments. Capital markets have grown in importance to such an extent that they are looked upon as the suppliers of the lifeblood of capitalism. Money Market Securities is one of the 3 principal kinds of securities that are purchased and sold in capital markets.

Characteristics of Money Market Securities

Money Market Securities constitute cheap ways to borrow funds to meet short-term obligations. They have 3 main features (Orrill).

Money Market Securities are very safe

These securities supply investors with a conservative and dependable way to maintain capital. Government watchdog agencies such as the U.K’s Financial Services Authority [FSA] and the Securities & Exchange Commission [SEC] of the U.S make sure of the safety of these securities by issuing regulations that a minimum of 95 percent of a money market fund’s securities should be those that have been given highest credit ratings by a minimum of 2 principal credit rating institutions in the country. As a result, the high credit ratings [provided by trustworthy credit rating institutions such as Moody’s and Standard & Poors] earned by Money Market Securities far exceed the ratings of nearly all other investment-grade securities (Orrill).

Money Market Securities have early maturity

The primary function of Money Market Securities is to cover the short-term capital needs of governments, business entities, and financial institutions. A majority of these securities have maturity dates below 3 months, while a few mature later – but not more than 12 months (Orrill).

Money Market Securities have high liquidity

These securities are highly liquid in the sense that they can be changed into cash rapidly. The short-term feature of such securities is largely responsible for the liquidity of money market investments because their principal is repaid very quickly. Such liquidity, in addition to the better return on principal as compared to savings accounts, serves to make Money Market Securities highly attractive to investors (Orrill).

Money Market Securities facilitate the creation of Money Market Funds

Given the fact that a majority of Money Market Securities are traded in big denominations, money market funds have become the ideal way for people to invest in them. The high safety and extreme liquidity features make money market funds highly appealing not only to investors who do not like taking risks but also to those looking for a haven to harbor money between high-risk and high-return investments (Orrill).

Types of Money Market Securities

There are 6 types of Money Market Securities.

Treasury Bills

They are short-term securities issued by the government with maturity dates up to or below 12 months. Treasury Bills are sold at prices below their face value, but when they mature, their full face value is paid. These securities are advantageous because they are easily affordable, easy to purchase, and free of risk. Their disadvantage lies in their extremely low return rate (Economywatch.com).

Certificates of Deposit

They are time deposits [varying from 3 months to 5 years] allotted by commercial banks. Certificates of Deposits are advantageous because their rate of return is higher than Treasury Bills or bank savings accounts, and they are considered very safe because not only is it possible to know the returns in advance, but the deposit certificate depicts the country’s national Insurance corporation as guarantor of the investment. These securities are disadvantageous because their rate of return is lesser than several other types of investments, and the funds are frozen as a result of the lengthy period of maturity, while high penalties are levied in case of premature withdrawal (Economywatch.com).

Commercial Paper

They are promissory notes issued by big business organizations. Their face value is higher than Treasury Bills and Certificates of Deposit. The maturity periods of these securities do not exceed 9 months. They are advantageous because they are considered very safe as it is fairly easy to correctly guess the financial status of the organization over a short period (Economywatch.com).

Bankers’ Acceptance

They are investments whose repayment is guaranteed by a bank. These securities are almost exclusively used to fund international trade [exports and imports]. The main advantage here is that holders need not wait until Bankers’ Acceptance matures, but can sell them in the secondary market whenever they like (Economywatch.com).

Euro Dollars

These securities are dollar-denominated deposits kept by non-U.S banks. As the Eurodollar market is not hampered by strict rules, such banks can function at margins lower than U.S banks. Maturity periods of Euro Dollars do not exceed 6 months. The main disadvantage of these securities is difficult attainability as the Eurodollar market is accessible only by big organizations, while individual investors can reach it only through the medium of money market funds (Economywatch.com).

Repurchase Agreements

Government security holders use Repurchase Agreements when they sell the securities to lenders while pledging to repurchase from them overnight. Repurchase Agreements, therefore, have terms varying from 1 night to 30 days. Their main advantage lies in their high safety factor brought about due to guarantee by the government (Economywatch.com).

It is a well-established fact that the capital market holds a position of vital importance in the modern world. Today, capital market investment is no longer limited to individual countries, but investors [subject to certain rules] can invest in the capital market of any nation; this has led to a significant increase and improvement in international trade. Due to the huge setbacks suffered by stock/bonds courtesy of massive, high-profile international scandals such as Enron and WorldCom [U.S], Vivendi Universal [France], and the U.K’s Oxford drugs company British Biotech, Money Market Securities have emerged as the favorite type of securities that are traded in capital markets.

References used

“Money Market Instruments.” Economywatch. (N.d). Web.
Orrill, Jim. “Characteristics of Money Market Securities.” eHow. 2010. Web.

Title: Money Market Securities.

Governments, businesses and financial institutions get funds for their functions in capital markets.
A capital market supplies the lifeblood of capitalism.
Money Market Securities are one of 3 main types of securities traded in capital markets.
They are safe.
They have quick maturity.
They have high liquidity.
They facilitate creation of Money Market Funds.
Treasury Bills.
Certificates of Deposit.
Commercial Paper.
Bankers’ Acceptance.
Euro Dollars.
Repurchase Agreements.
Capital markets are vitally important in the modern world.
Investors can today invest in the capital market of any nation in the world.
Huge scandals involving stocks/bonds have caused investors to prefer Money Market Securities.

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Essay on Money

Money is a significant part of human civilisation. It is difficult to think about the world without money. Everybody needs money for various purposes, starting from day-to-day transactions to savings for the future. But if we go back to history, we will find that before money came into existence, there was a barter system to facilitate transactions among individuals in society. With the development of civilisation over time, the barter system lost its ground and was replaced by money. This essay on money will provide ideas to students so they can effectively write essays on this topic. They can also check out the list of CBSE Essays to practise more essays on different topics and boost their writing skills.

500+ Words Essay on Money

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts which also acts as a standard of deferred payments. The main functions of money are distinguished as: a medium of exchange, a unit of account and a store of value. The money supply of a country consists of currency (banknotes and coins) and bank money. Bank money usually forms the largest part of the money supply.

With the help of money, we can fulfil our dream. We can go on trips to various places, eat tasty food, buy a beautiful house and can buy any luxury items. Many businessmen earn a lot of money by making profits from their businesses. They provide services or make products that people need and make money from them. Now, there are many industries and startups which have set up their business and gained success. But still, there are many people who use illegal modes to earn money and become a part of corruption.

Significance of Money in Economy

Money plays an important role in shaping the economy of any country. Money can stimulate or even hamper economic progress. Money affects the income, output, employment, consumption and economic welfare of the community at large. Money through its purchasing power increases consumption and, as a store of value, increases investment, and employment and leads to economic development.

Demonetisation in India

The Prime Minister of India, Narendra Modi, announced demonetisation on 8th November 2016, where Rs 500 and Rs 1000 notes were withdrawn from circulation. It was a major event of the year 2016. The demonetisation decision was taken by the Government in consultation with the RBI. The action was taken to tackle Black Money which is available in various forms like cash, investment in property and real estate, luxury goods like jewellery or with foreign currency dealers and private financiers. The target was to curb the use of black money.

The other motto of demonetisation was to reduce corruption. With demonetisation, the cash in the hands of corrupt people becomes useless, and if the same is deposited in the banks, it loses anonymity, and the person has to pay taxes on the said amount.

The demonetisation also helped in promoting digitalisation through online transactions. A large section of the Indian economy was being run on the cash system, which does not get captured by the tax department as it does not leave any trail. So, the Government thought about promoting digitisation and formalisation of the economy through online transactions, e-wallets, and various payment instruments like Paytm, Rupay cards, the BHIM app etc. The beauty of these instruments is that the entire economic activity gets captured. It reduces tax evasion and improves tax collection.

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Guest Essay

Let People Sell Their Kidneys. It Will Save Lives.

An illustration of a shirtless man dangling his feet in a kidney-shaped pool.

By Dylan Walsh

Mr. Walsh is a freelance journalist who focuses on science and the criminal justice system.

I owe the past 25 years of my life to my father, who dozed under general anesthesia as a surgeon cut eight inches from stomach to spine, removed one of his kidneys, placed it on ice and sent it to a nearby operating room, where it was fitted into my abdomen. My brother had a kidney transplant the same week, six days before I did. His new kidney came from a man we never knew who had died in a car accident in the mountains.

We were teenagers, afflicted with a congenital kidney disease. But we were lucky.

There are 100,000 people in the United States waiting for a kidney. More than half a million are on dialysis, which from my experience I know to be more of a means of survival than a form of living. About 4,000 people die each year while waiting for a kidney. Another 4,000 become too sick to undergo surgery — a gentler way of saying that they, too, die. The National Kidney Foundation estimates that without more investment in preventing diabetes and other ailments, more than one million people will be suffering from kidney failure by 2030, up from over 800,000 now .

These numbers illuminate a story of largely preventable suffering. Hundreds of millions of healthy people walk the streets quietly carrying two kidneys. They need only one. The head-scratcher is how to get kidneys from the people who have one to spare into the people who need one. Getting them from genetically modified pigs , as was recently found possible, won’t be a widespread solution for a very long time.

There’s a simpler and long overdue answer: Pay people for their kidneys.

Creating a market for kidneys is not a new concept, but it’s historically been met with disgust: Sell what? To be fair, some of the ways to structure such a market would be irresponsible, coercive and deserving of that disgust.

But others are more thoughtful and prudent. One approach is to make the federal government the sole purchaser of kidneys. Donor and recipient would never meet. Compensation would be fixed, haggling impossible. After the kidney is acquired, the transplant process would unfold in the typical manner.

This idea fits nicely within today’s health economics. Through a quirk of a 50-year-old law , Medicare is the primary insurer for anyone of any age in need of dialysis or a transplant. This has extended the lives of hundreds of thousands of people. It has also been costly, with end-stage renal disease patients accounting for about 7 percent of Medicare’s spending, despite constituting 1 percent of its users. Because transplants are ultimately cheaper than dialysis, if Medicare started paying people to donate kidneys, fewer people would need to survive on dialysis, and Medicare would need less taxpayer money to cover it.

Federal law presents the first and most significant hurdle to a market for kidneys. The 1984 National Organ Transplant Act, NOTA for short, makes it unlawful “to knowingly acquire, receive or otherwise transfer any human organ for valuable consideration for use in human transplantation.” Though markets exist for human tissue, bone, amniotic stem cells and blood plasma and for the use of a woman’s womb and her eggs, organs cannot legally be bought and sold.

For several decades, efforts to persuade people to become kidney donors haven’t increased the number of volunteers. There were roughly 6,000 living kidney donors in 2000; there were roughly 6,000 in 2023. The only way to get more donors is to change the law.

One organization, the Coalition to Modify NOTA, hopes to legalize compensation and then pass a federal law it has titled the End Kidney Deaths Act . As it’s written, it would award living donors $50,000 over five years — $10,000 per year — through refundable tax credits. The coalition says it has held meetings with nearly 100 legislators from both parties and has been encouraged by the level of support for its idea (though the bill still has not been brought to the floor of Congress).

Other proposals meant to solve kidney donation shortages abound. Several bills have recently been introduced to Congress, including one that would prohibit life and disability insurance companies from denying coverage to or increasing premiums for donors, and another that would reimburse donors for expenses they incur during donation. Two Colorado state representatives, one Democratic and one Republican, have drafted their own proposal for a statewide tax credit of up to $40,000 for organ donors; a representative in New Hampshire is trying to create an open market for organs in his state.

Some people who are opposed to the idea of selling organs argue that we should instead improve the process of capturing organs from people who have died. But even a flawlessly functioning system that recovered and transplanted 100 percent of available organs would not meet demand. And deceased-donor kidneys don’t last as long as those from living donors.

One of the most consistent and vociferous objections to a kidney market centers on the fear of coercion or exploitation: If you pay people to do something, particularly if you pay them a lot, then you will drive those who are most desperate and socially precarious to take steps they later will regret.

Ned Brooks, a co-founder of the Coalition to Modify NOTA, told me there are ways to mitigate “the concern that someone is going to donate a kidney because they have a gambling debt or they are losing their house to foreclosure or you name it.” His organization’s proposal, for example, would split the $50,000 payment into installments arriving only around tax season to weaken donation as a get-rich-quick scheme. Even now, donation requires a weeks- to monthslong process of physical and psychological evaluation .

Compensating donors could also go a long way to reducing current inequities. Black patients are more than three times as likely to develop kidney failure as white patients. And under today’s system, white patients are about four times as likely as Black patients (and approximately two times as likely as Asian and Hispanic patients) to receive a living kidney donation within two years of needing one . While there are many reasons for this imbalance, one critical factor is that white people generally possess social networks saturated with volunteers who are able to make the kinds of accommodations needed for major surgery. Compensation would broaden the pool of available kidneys for those who lack these social networks.

Alongside the flurry of political activity surrounding organ donation, a shift in attitudes among the public seems to be underway, making this moment particularly ripe for legislative change. A 2019 study found that roughly 60 percent of Americans would favor compensation through a public agency — and this number, depending on the form of compensation, would increase to 70 percent to 80 percent if such a system eliminated kidney shortages. This is a rare nonpartisan idea at a highly polarized moment and could save the dozen people who die every day waiting for a kidney.

My kidney has been ticking along since August 1998, far longer than the average transplantation. It will give out sometime, maybe before my children graduate from high school. It will almost certainly fail before any children they may have are born. Still, I’ve lived 25 years I would not have had otherwise. I hope for a world in which others — many others — are given such an exquisite gift.

Dylan Walsh is a freelance journalist in Chicago who focuses on science and the criminal justice system.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

Follow the New York Times Opinion section on Facebook , Instagram , TikTok , WhatsApp , X and Threads .

'Panama Papers' trial starts, 27 people charged in the worldwide money laundering case

The panama papers include the collection of 11 million secret financial documents that illustrate how some of the world's richest people hide their money..

By AP April 9, 2024, 9:37:11 AM IST (Published)

'Panama Papers' trial starts, 27 people charged in the worldwide money laundering case

More From Forbes

Trump stock (djt) is overvalued-but you might be crazy to short it.

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NEW YORK - SEPTEMBER 20: Donald Trump (L) speaks with Frank Zarb, former CEO of the Nasdaq Stock ... [+] Market, before opening the Nasdaq Market September 20, 2005 in New York City. Trump listed Trump Entertainment Resorts with Nasdaq. (Photo by Michael Nagle/Getty Images)

Dumb Money was a movie based on a true, David vs Goliath tale, that pitted small, retail stock investors against deep pocketed Wall Street titans. GameStop was the preferred stock of choice. In this story an assembly of small, “naive” investors clobbered the savvy billionaires thanks to a“short squeeze” play utilizing an investments column on Reddit and gutsy resolve among a broad-based contingent. Ultimately, the humbled rich guys, recouped some of their losses, but not without some battle scars, and a few lessons on how to properly track the number of days to cover a short position. It is now 3 years later and the shorts are at it again. This time the stock of choice belongs to Former President Donald Trump, known as Trump Media & Technology Group (NASDAQ Ticker: DJT). In place of the Reddit crowd, we have fervent Trump loyalists who are scattered around the country in mostly rural areas. They love their guy, and unlike most “investors”, may not really care about making money. With a current stock price near $40, DJT sells for a 33% discount to the Trump bible and provides him with more money. It would not take much for this group to rally and cause serious pain to the shorts. As an important note, shorts are exposed to unlimited losses and have a steep entry fee to play their “game”. DJT is shaping up to be another GameStop saga (GameStop II or Dumber Money?). Despite all temptations, this is a good stock to avoid—on both sides. The risk is simply too high.

To be clear, Donald Trump’s name elicits strong emotion—both positive and negative. When it comes to publicly-traded stocks, polarized emotion can either be very good or very bad for a stock price. In the case of DJT, both are on visible display. Irrespective of Trump’s NY real estate holdings, global hotels, TV and book royalties and other miscellaneous business interests, it his recent stock transaction that has become the cornerstone to his total net worth holdings. During the past few weeks his net worth has soared more than $3-4 Billion raising his net worth from $2B to $6B. Moreover, the SEC S4 filings make clear, that if the stock price remains above $17.50 for 20 out of 30 trading days, Mr Trump will receive an additional 36 million “earnout” or bonus shares. Based on recent prevailing stock prices in the range of $45-$50, these earnout shares could be worth an additional $1.5 to $2 Billion. Consequently, his special stock earnout clause will go into effect, unless his stock drops by more than 63% from current levels in a few weeks.

Ironically, just a few weeks ago the former president was under severe financial pressure, with $454 million in fines, penalties and judgements and was seemingly on the brink of default. Now, in less than 1 month, Mr Trump’s wealth has potentially quadruppled from approximately $2 billion to as much as $8 billion. This is an extraordinary turn of events and there are few, if any, on the planet who have experienced a net worth gain approaching this much during the same time period. It all happened precisely when he needed it most and his back was against the wall. Irrespective of whether you love him or hate him, there can be no denying that the former president has been blessed with good timing and luck. Certainly in this case, his fortuitious, sky rocketing stock fortune bailed him out. At least temporarily...

It is worthwhile to examine the underlying components of his recent wealth creation. To most industry observers it is an overpriced facade due to crumble and wreak havoc on those who have supported an inflated valuation.

At the very least, the stock, Trump Media & Technology Group (NASDAQ Ticker: DJT), has exceeded all normal stock valuation metrics. From a traditional valuation perspective, there is no publicly traded company, out of 66,000 publicly-traded companies that we examine on Bloomberg or Capital IQ, that can compare to this stock. To be clear, there is nothing even close.

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Best 5% interest savings accounts of 2024.

To properly analyse the DJT stock price, it may be helpful to provide a few background facts of how the Trump Media & Technology Group came to be a publicly-traded company. The story begins with a special purpose acquisition corporation (SPAC) known as Digital World Acquisition Corp (DWAC) that launched in September, 2021. This “Sponsor” company raised $287.5 Million with the intent to later acquire a target company. SEC records show that some controversy surrounded the timing of the offer (strict rule that SPACs could not be formed with the intent to buy a specific target) as well as the timing of some insider trades. But this information regarding impropriety is an important, albeit, side detail in the larger picture.

In the month following the DWAC launch, a Letter of intent (LOI) was extended to Trump Media for $875 Million (total enterprise value of $1.2 billion). The offer was somewhat surprising for a number of reasons. First, the SPAC ownership was created with the help of ARC capital, a Chinese-based company that had a prior history with SEC investigations associated with misrepresenting shell companies. Second, the valuation of the initial offer at $875 Million, was a stretch based on any traditional valuation metric. And third, as discussed above, the timing of the SPAC formation and LOI offer led to an SEC investigation with associated fines/penalties imposed.

Once the target company (Trump Media) accepts the LOI offer to merge with a public SPAC sponsor company, there are many preparations required prior to announcing a public business combination agreement (BCA). At the time of the BCA announcement the sponsor company typically seeks an independent group to provide a “Fairness Opinion” on the offer price to ensure that there is some oversight and protection for the shareholders. The “Fairness Opinion” is submited to the Board of Directors of the Sponsor group, who have a legal obligation to protect the interest of all shareholders including insiders (Class B) as well as public shareholders (Class A). Since there is the potential for a conflict of interest, the BOD seeks a layer of protection from a group of established experts, who ideally possess impeccable credentials, credibility and industry experience. This group evaluates the target company and provides an independent view on the appropriateness of the offer price. Notably, “Fairness Opinions” were not mandatory several years ago when the Digital World Acquisition Corporation first created its SPAC and placed a target price on Trump Media. Nowadays, due in large part to overly optimistic growth projections by target companies undergoing a SPAC transaction, the Securities and Exchange Commission (SEC) is more focused on inflated valuations and target growth projections. To this point, the SEC documents do not disclose that any Fairness Opinion was ever provided for the Trump Media target, and it is highly doubtful that any credible expert would be able to easily justify or support the original $875 Million price ($1.2 Billion total enterprise value).

The valuation of DJT, based on traditional metrics, is a relatively straight forward exercise. SEC documents show that Trump Media expected monthly active user growth ranging from 58% to 33% for the first four years along with revenue growth of 90% to 55%. Importantly, expected enterprise to revenue multiples ranged from 26.8x to 13.3x for years one through five sequentially. To put the valuation in perspective, the enterprise to forward (next period) revenue valuation multiple for other social media companies such as: Meta, Twitter, Pinterest, Snapchat, Reddit or Tencent ranges from 8.0 to 3.6. Trump Media has a TEV (total enterprise value) to Revenue multiple (based on 4/4/24 price) of 984 or 123x to 273x more than other social media companies. This implies that Trump Media (DJT) is currently valued at a massive premium to other well known social media companies . To put this another way, based on the current $3.4 million in revenue and expected growth rate of 90%, they would have approximately $6.4m in revenue for next perod. Utilizing the forward TEV of Meta (8.0), Trump Media would have a market capitalization of approximately $50M. The current market capitalization of DJT (based on 4/4/24 closing price) was $6.3 Billion! This is an approximate overvaluation of 125X. Alternatively, the DJT stock could drop by 99% and still be considered overvalued by current valuation metrics.

This perceived overvaluation may entice some investors to “short” the stock or sell the stock at current levels and then repurchase at a later time (when they believe the price will be at a lower level). But this strategy can go painfully wrong. For those familiar with the GameStop short squeeze saga, consider DJT as a potential GameStop II. Things could get (very) ugly for either side and investors would be wise to simply stay on the sidelines and watch events unfold.

In order to “short” a stock, the short seller needs to “borrow” the stock from an existing long-only investor. For most stocks this is not a herculean task. An investor simply asks his/her broker to short a stock and the broker “borrows” the stock from a willing participant. But Trump Media is no ordinary stock. Whereas the cost to borrow a stock might normally be a few annualized percentage points, the cost to borrow Trump Media is currently set at an annualizedc rate of 550% for existing short sellers. And, according to short sale data provider S3 Partners, new short sellers need to pay as much as 900% annualized interest rate (new record) to short the stock. This implies that for a new short seller, the stock would have to drop by 2.5% per day just to break even!

There are currently 57 million shares in available float (available to trade). Of this amount, 1.67m shares are held by institutional investors (2.9%) and the rest are held by retail investors. There are currently 4.9 million shares currently short and trading volume has been running above 5 million shares per day for the past few days. Unlike, the Gamestop situation a few years ago, there appears to be plenty of liquidity for short sellers to escape within a day, if necessary.

But there are some other issues to address. Mr Trump currently holds 78,750,000 shares (57.6%) before his additional 36,000,000 (potential) earnout shares and given his contractual 6 month lock up, he cannot sell shares anytime soon. Moreover, after Mr Trump receives his additional shares, he will hold 65% of the company, which will be the second highest concentrated ownership percentage of any individual holder with a multi billion dollar company (after Carl Icahn). Finally, the fact that Trump Media (DJT) is a stock that is trading for a value based above $6 Billion, despite compelling data to suggest it is valued far less, demonstrates the power of retail investors to bid a stock up to seemingly unreasonable levels. Although at the timing of this publication (4/5/24), the stock is well off its $71.93 high since its March 26, 2024 DeSpac, it still has the potential for a retail trade rally. The cost to short the stock is 900% on an annualized basis. This is not a stock that an investor can hold for very long without getting burned. Though temptation may suggest that it is easy money to short this stock, the better decision is probably to sit on the sidelines and watch. Nothing good will happen to the new short seller, if many retail investors or even a deep pocketed hedge fund decides to come in strong on the other side.

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‘Panama Papers’ trial starts. 27 people charged in the worldwide money laundering case

The Associated Press

April 8, 2024, 7:17 PM

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PANAMA CITY (AP) — The trial of 27 people charged in connection with the worldwide “Panama Papers” money laundering started Monday in a Panamanian criminal court.

Those on trial include the owners of the Mossack-Fonseca law firm that was at the heart of the 2016 massive document leak.

The Panama Papers include a collection of 11 million secret financial documents that illustrate how some of the world’s richest people hide their money.

The repercussions of the leaks have been far-ranging, prompting the resignation of the prime minister of Iceland and bringing scrutiny to the leaders of Argentina and Ukraine, Chinese politicians and Russian President Vladimir Putin, among others.

The often-delayed trial opened Monday, with lawyers Juergen Mossack, Ramón Fonseca and other former representatives, lawyers or ex-employees of the firm facing money laundering charges.

Mossack was present in the courtroom, and said “I am not guilty of such acts.”

Lawyers for Fonseca said he was in a hospital in Panama.

The case centers on allegations the firm set up shell companies to acquire properties in Panama with money from a sprawling corruption scheme in Brazil known as the Car Wash , or Lava Jato in Portuguese.

Fonseca has said the firm, which closed in 2018, had no control over how its clients might use offshore vehicles created for them. Both Mossack and Fonseca have Panamanian citizenship, and Panama does not extradite its own citizens.

The two were acquitted on other charges in 2022.

The records were first leaked to the German daily Suddeutsche Zeitung, and were shared with the International Consortium of Investigative Journalists, which began publishing collaborative reports with news organizations in 2016.

U.S. federal prosecutors have alleged that Mossack Fonseca conspired to circumvent American laws to maintain the wealth of its clients and conceal tax dollars owed to the IRS. They alleged the scheme dates to 2000 and involved sham foundations and shell companies in Panama, Hong Kong and the British Virgin Islands.

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

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Money is Everything
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260 Money Topics to Write About & Essay Examples
There are lots of money essay topics for students to explore. You might want to focus on the issue of money management or elaborate on why money is so important nowadays. Other exciting topics for a money essay are the relation between money and love, the role of money in education, etc. Below you'll find a list of money topics to write about!
Essay on Money Market
250 Words Essay on Money Market What is the Money Market? The money market is a part of the financial world where people and organizations can borrow or lend money for a short time. It is like a big marketplace, but instead of buying and selling things like toys or books, people deal with money. This market is important because it allows ...
Money Markets: What They Are, How They Work, and Who Uses Them
Money Market: The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short ...
138 Money Essay Topics to Write about & Money Research Topics
The author tries to bring out the foolish things people do with their money. Money Supply in the United States. This essay discusses the money supply, what constitutes it, and the current supply in the US. It will also examine how the COVID-19 pandemic affected the M2 supply in the country.
(PDF) Money Markets
Abstract. Money markets offer monetary services and short-term finance in the capital market with the credit support of institutional sponsors. Investors finance money market instruments at low ...
Money market
Essay On Money Market. Emerging Economies Selected: India and China Money Market 1. India It is a market where short-term funds with maturity ranging from overnight to one year in India which are close substitutes of money even the financial instruments. It had diversified from conventional platform of treasury bills and call money to ...
PDF Money Market Essays
FOREWORD. This booklet is the second of a series of publications designed to furnish the student of banking with informa tion not readily available elsewhere, concerning various aspects of the national money market and factors affect ing it. The first of the series, Bank Reserves—Some Major Factors Affecting Them,was published in March 1951.
Money Market Vs. Capital Market: What's the Difference?
The money market is less risky than the capital market while the capital market is potentially more rewarding. The returns are modest but the risks are low. The instruments used in the money ...
Money markets
The examples of money market's instruments are bank deposits, certificates of deposit, interbank loans, money market mutual funds, commercial paper, treasury bills, and securities lending and repurchase agreements (repos). (Dodd, R., 2012). Interbank loans are loans between banks which are not secured by collateral.
'Miles Walked, Miles Driven': This Year's College Essays About Money
A typical Tuesday bleeds into a typical week, adding up to a total of over 600 miles. Nearly three hours each day before I add in school, work, swimming and commitments as a brother, as a son ...
Money Market Essay Examples
Get your free examples of research papers and essays on Money Market here. Only the A-papers by top-of-the-class students. Learn from the best!
Role of Money Market-Financial Market Analysis Essay
Role of Government. Money Markets are a significant source of funding state and local governments for public projects such as airports, bridges, road, water and sewage. Credit Institution. Credit institutions use the money market funds as cash management tools that provide a high degree of liquidity and stability at a low cost.
Money Market Literature Review
Money Market Literature Review. 700 Words3 Pages. Introduction Money market is a set of institutions, conventions and practices. It is aim of which is to facilitate the lending and borrowing of money on a short-term basis (Robert Vincent Roosa, 1-20-2015). Money market is a short term loans and its maturity is one year or less than one year.
Chaos, Injustice and Joy: This Year's College Essays About Money
In The New York Times's 10th year of publishing teenagers' college application essays about money, work, social class and other related topics, all four writers grappled with these questions ...
Essay On Money Market
Money Market. 1. India. It is a market where short-term funds with maturity ranging from overnight to one year in India which are close substitutes of money even the financial instruments. It had diversified from conventional platform of treasury bills and call money to commercial paper, certificates of deposit, repos, forward rate agreements ...
Essay On Money: 100, 250 Words Samples
Essay on Money in 100 Words. El dinero or money is used as a medium of exchange, unit of account, and store of value. It facilitates trade, allowing for the smooth exchange of goods and services, while also enabling efficient allocation of resources and encouraging economic growth. As a unit of account, it provides a standardized measure of ...
Money and Banking. Financial Markets
Money and Banking. Financial Markets Essay. The issues of finance and economy are of vital importance for the existence of mankind. The recent events in the sphere of financial markets demonstrate the negative effects of various problems for all spheres of social life. This essay will focus on the four basic terms of finance - financial ...
Why Money Rules the World: [Essay Example], 521 words
Money has resulted in significant economic disparities among individuals and nations. According to the World Inequality Database, the richest 1% globally owns 43% of the world's wealth, highlighting the wealth disparity perpetuated by money. Additionally, money enables countries to exercise power, influence policies, and determine market dynamics.
Essay On Money Market Instruments
Essay On Money Market Instruments. 1437 Words6 Pages. The commodities that are traded or dealt in a financial market are financial assets or securities or better known as financial instruments. There is a variety of securities in the financial markets as the requirements of lenders and borrowers are varied.
Essay on Money for Students and Children
500+ Words Essay on Money. Money is an essential need to survive in the world. In today's world, almost everything is possible with money. Moreover, you can fulfill any of your dreams by spending money. As a result, people work hard to earn it.
Money Market Securities: Characteristics and Types
Money Market Securities are one of 3 main types of securities traded in capital markets. Characteristics of Money Market Securities. They are safe. They have quick maturity. They have high liquidity. They facilitate creation of Money Market Funds. Types of Money Market Securities. Treasury Bills. Certificates of Deposit.
Essay on Money
500+ Words Essay on Money. Money is any object or record that is generally accepted as payment for goods and services and repayment of debts which also acts as a standard of deferred payments. The main functions of money are distinguished as: a medium of exchange, a unit of account and a store of value. The money supply of a country consists of ...
Essay on Money
2. This essay sample was donated by a student to help the academic community. Papers provided by EduBirdie writers usually outdo students' samples. Cite This Essay. Download. Money has a major role in the Development of society often times, people say that they can live without money. They define money as just one of the tools that enhance ...
Money-Market Cash Rises to Fresh All-Time High With Fed on Hold
April 4, 2024 at 1:04 PM PDT. Listen. 2:01. Money-market fund assets rose to an all-time high on expectations short-term rates will remain elevated as the latest Fedspeak suggests officials are in ...
Opinion
The National Kidney Foundation estimates that without more investment in preventing diabetes and other ailments, more than one million people will be suffering from kidney failure by 2030, up from ...
'Panama Papers' trial starts, 27 people charged in the worldwide money
The trial of 27 people charged in connection with the worldwide "Panama Papers" money laundering started on Monday, April 8, in a Panamanian criminal court. Those on trial include the owners of the Mossack-Fonseca law firm that was at the heart of the 2016 massive document leak. The Panama Papers include the collection of 11 million secret ...
Trump Stock (DJT) Is Overvalued-But You Might Be Crazy To Short It
The current market capitalization of DJT (based on 4/4/24 closing price) was $6.3 Billion! This is an approximate overvaluation of 125X. Alternatively, the DJT stock could drop by 99% and still be ...
'Panama Papers' trial starts. 27 people charged in the worldwide money
PANAMA CITY (AP) — The trial of 27 people charged in connection with the worldwide "Panama Papers" money laundering started Monday in a Panamanian criminal court. Those on trial include the ...