Contextualizing the Risks of Money Markets

in Currency Market

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...

Introduction to The International Monetary Fund

in Currency Market

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...