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The world economic markets often move back and forth between the two extremes” (p. 416).

Short-term markets, or money markets, consist of securities that will mature in a year or less. Money markets provide short-term funding for the global financing system. Treasury bills and commercial paper are bought and sold in money markets...

Treasury bills and commercial paper are bought and sold in money markets.

Corporations may also use more traditional methods for raising capital by borrowing from banks and other established lenders. Businesses that require financing for inventory often borrow from banks. Firms can use retained earning, or profits, to raise capital...

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