Originally Posted by rowan

So the money market is basically for short term loans and deposits?

I'm still trying to figure out why in Australia the banks are charging a percent or two higher for home loans than the Reserve Bank's set interest rates, when the bulk of the funds they are lending would probably be customer's savings account balances. ie to draw a loan they do not need to borrow anywhere near 100% from the reserve bank, and with the shitty interest rates they pay on savings (between 0.0% - 0.5% p/a) they must be making an absolute killing by lending out their customer's money at 7% p/a.