Variable capital, also known as short-term financial market, refers to the market of financial assets whose maturity is less than one year.
The main function of markets is to keep financial assets liquid so that they can be readily converted into liquid ones.
In fact, its existence is to meet the short-term funding needs of borrowers on the one hand, and to find a way out for temporarily idle funds on the other hand.
Money market generally refers to the market for short-term credit instruments such as Treasury bills, commercial papers, bank acceptance bills, negotiable certificates of deposit, and repurchase agreements.
The characteristics of the money market are respectively short maturity, strong liquidity and low risk.
After being divided into cash money and deposit money, it is called “quasi-money”, so it is called “money market”.
