During the course of each day, discount houses borrowed money under a variety of heads, the various categories of loans being distinguished as to: the source from which the funds came; the term for which the funds were taken; the rate that was paid on the funds relative to other rates in the structure. Within this rough framework of analysis the present chapter examines the factors which shaped the houses’ daily money position and the operations by means of which the daily balance was achieved. Indication is given of the main changes that took place in the relative importance of various lenders to the discount houses, the varieties of loans taken by the houses and the interest rate structures they encountered.
KeywordsInterest Rate Money Market Market Rate Liquid Asset Treasury Bill
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- 12.See H. F. Goodson, ‘The Functioning of the London Discount Houses’, The London Discount Market Today (London, 1969) pp. 30–5.Google Scholar