On The Impact Of Money Market Funds

The first Money Market Fund(MMF) was created in American in 1972. From then on, The MMF has developed rapidly in aspect of asset scale, fund amounts and fund accounts. In currently, The MMF has been the very important product in American funds industry.In currently, Money Market Fund is still not exist in china and domestic documents about MMF are very few. In addition, some documents only refer to the importance of the MMF and seldom analyze the character of the MMF or its role in finance market.With MMF as research objective, the paper presents its common theory, introduces its development situation, analyzes its nature character and, finally, demonstrates emphatically its effect on the different sector. The paper's structure is:The chapter one introduces the reason why selecting this subject as topic and some documents about the MMF in foreign country. The chapter two presents the MMF's common theories that involve to originate background, its invest object and risk, its sorts and characters, its management strategy and regulation. The chapter three introduces the MMF's current situation in American, that means, its asset scale, fund amount and information about the fund accounts. The chapter four analyzes the MMF's nature character and points out that the MMF is the interest-bearing asset, non-risk asset and the MMMF is one special intermedia institution. The chapter five demonstrates emphatically MMF's effect on the different sectors or fields, that involve the commercial bank, funds industry, household or institution and financial market. Through the analysis, we get the clearer identification both the MMF and the other financial instruments and financial institutions, and get more comprehensive understanding about its financial innovation. Meanwhile, we get a more comprehensive picture about the Chinese financial industry.