The market for loans to the discount market
Always the short-term loans
market
Because of the time value of
money
They apply interest rate on borrowed money
In this market for call money
Here you accept debt and become
a debtor
Or grant a credit and become a
creditor
In a classical transfer of spending
power
While dealing in money, its
present value
Proves not equal to its future value
Hence, they factor interest to the
future value
The participants are known from
their reputations
The banks, individuals and
corporate organisations
And the non-bank financial
institutions.