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Investing and raising money or capital, so-called "financing operations",
take places in the monetary market. This includes buying financial products such as shares, bonds and
funds, for example, or taking out a mortgage, depositing money in a savings account or buying
foreign currency. This is where different groups of providers and buyers
with different investment and credit needs meet.
The national monetary market is divided into the following sub-markets:
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Market
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Description
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Money market
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The money market includes trading
in central-bank money and short-term
money-market instruments, especially among banks.
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Capital market
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The capital market is the market for medium-
to long-term transactions between banks and
the public.
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Bank deposit market
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The bank deposit market denotesthe commercial banks' customer-money business. It is
mainly comprised of the money deposits of households and institutional investors in the form of
savings and other deposits and medium-term notes.
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Bank credit market
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The bank credit market corresponds to the credit business of commercial banks and
comprises operating and investment loans to companies, private households and public institutions.
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Market for non-bank financial intermediaries
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The market for non-bank financial intermediaries (other deposits) is the market
for insurance companies, pension funds, investment funds and financial companies to raise and
invest money.
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