Money market faces shortage of funds due to?

Question: Money market faces shortage of funds due to?

The money market can face a shortage of funds when there is an increase in the demand for short-term funds relative to the supply of available funds. This can occur due to various factors, such as an increase in the demand for credit from businesses or individuals, a decrease in the supply of funds from lenders, or changes in government monetary policy. When there is a shortage of funds in the money market, interest rates tend to rise as borrowers compete for the available funds, which can have ripple effects on other areas of the economy.

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