The mechanism through which holders of temporary cash surpluses meet holders of temporary cash deficits is the:
A) Money market
B) Capital market
C) Clearinghouse
D) Financial futures market
E) Arbitrage process
F) None of the above

Question

Quizplus · Accepted Answer

The money market is where short-term borrowing and lending of funds take place, making it the mechanism through which holders of temporary cash surpluses meet holders of temporary cash deficits.

The Mechanism Through Which Holders of Temporary Cash Surpluses Meet