Money market account

A money market account (MMA) or money market deposit account (MMDA) is a non-financial account that pays interest based on current interest rates in the money markets.

Money market accounts typically have a relatively high rate of interest and require a higher minimum balance (anywhere from $1,000 to $10,000 or $25,000) to earn interest or avoid monthly fees. Like other bank deposits, they are liabilities from the bank's perspective. They should not be confused with money market funds.

United States

History

The Depository Institutions Deregulation and Monetary Control Act of 1980 set in motion a series of steps designed to phase in the deregulation of bank deposits, permitting a wider variety of account types and eventually eliminating interest ceilings on deposits. By the subsequent Garn–St. Germain Depository Institutions Act of 1982, on December 14, 1982, money market accounts were authorized with a minimum balance of no less than $2,500, no interest ceiling, and no minimum maturity, allowing up to six transfers out of the account per month (no more than three by check) and unlimited withdrawals by mail, messenger, or in person. Minimum denominations were eliminated on January 1, 1986, and the limitation that no more than three of the maximum six monthly outward transfers could be by check was eliminated on July 2, 2009.

Money market

As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less. Trading in money markets is done over the counter and is wholesale.

There are several money market instruments, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities. The instruments bear differing maturities, currencies, credit risks, and structure and thus may be used to distribute exposure.

Money markets, which provide liquidity for the global financial system, and capital markets make up the financial market.

Participants

The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods, typically up to thirteen months. Money market trades in short-term financial instruments commonly called "paper". This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.

Money market (disambiguation)

Money market may refer to:

Qianshi Hutong

Qianshi hutong (Chinese: 钱市胡同; pinyin: qiánshì hútong) translated as money market hutong, is a Beijing hutong recognized as the narrowest in the city. The street is located near to Qianmen, in the Dongcheng district. For most of its 55-metre (180 ft) length it is 70-centimetre (2.3 ft) wide and measures 40 centimetres (16 in) at its narrowest point, requiring passersby to turn sideways.

History

During the Qing Dynasty, Qianshi was a financial center of monetary exchange, home to 26 mints producing copper coins for nearly every bank in the city. The lane narrowed as these banks expanded. After the establishment of the People's Republic of China in 1949, the lane lost its function following the reformation of the monetary system and the production of paper currency.

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