monetary fund

Contextualizing the Risks of Money Markets

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Over the years, money market funds have been the safest means of investing some cash for a long term portfolio entry or for those who want a safe place to hold their money. But recent global developments, with the world economy sagging on its knees, experts have started to point out that there are risks in money markets too. This has shed the previous thoughtline that money markets are a risk-free investment avenue. You can no longer hold it for granted that your investment is safe, just because you are in the money markets. In fact, the US Securities and Exchange Commission (SEC) decrees that while investor losses entrusted to money market funds are rare, they are very possible.

However, just as they have become risky to an extent, they have also gained on the rate of interests and profits over the last one decade. Contemporary money markets can triple your initial capital within a few years, and give an impetus to real wealth. Similarly though, just as they are profitable, they can wreck you financially in just a few hours of mishap. It is wise therefore, that before you load your cash into money markets you ensure that you know not only what they are but also how they work. This will facilitate you to know which money market risks to take and which ones are too dear or foolish to take.

Let us begin by understanding what money markets refer to, as a concept. Simply said, money market funds are

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Introduction to The International Monetary Fund

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In a way, the IMF has been successful since it was established back in July, 1944. From its genesis, it has consistently worked to foster optimal global monetary cooperation for the general good of member states. The aim has been to secure the financial stability of world nations and facilitate a mutually benefiting international trade among these nations. This in return could boost both poverty reduction measures and promote high employment. With criticism to the institution considered, the International Monetary Fund has helped instigate a sustainable economic growth in most member states, apart from the third world countries which continue to trade in complete dependence of the international market.

The International Monetary Fund (IMF) was a Bretton-Woods brainchild as an international organization that regulated economic policies in member countries that impact on both the exchange rates in the global market and the balance of payments. In playing this role, the International Monetary Fund was charged with the responsibility of stabilizing international exchange rates in a way that could facilitate development in the world economy. Besides that, the IMF became a facility that offered highly leveraged loans to third world countries to aid them in establishing economic independence.

From the original 44 member states, the monetary fund has grown in membership to subscribe 186 nations to date. Kosovo was the last state to gain membership. Most of the nations under the United Nations Charter have

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