1. Governments borrow funds for numerous reasons. 2. Low interest rates boost bonds by making it cheaper to borrow funds in the money Market and invest it in bonds. 3. They borrow short-term funds and use these funds to purchase higher yielding assets, such as Treasury Bills and commercial bills. 4. The discount houses borrow funds from commercial banks, accepting houses, overseas and other banks and from industrial and commercial companies. 5. The government might then borrow these funds from the banking system. 6. An out-in loan is when a bank borrows foreign-denominated funds from abroad and re-lends them in Thailand. 7. As the deadline approaches, they borrow funds from the money market, driving up demand. |