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"Money market is essentially Market for short term funds" Discuss. |
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Answer» (i) The money market is a market for short term funds which deals in monetary assets whose period of maturity is up to one year. (ii) In this market the risk is very less and highly liquid, unsecured and short term debts are traded. (iii) It does not have any physical location, but it is an activity conducted through the telephone and through internet. (iv) Main aim is to provide short term funds for urgent requirement of cash and temporary investment of funds for earning returns. (v) The major participants in the market are: Reserve Bank of India(RBI), Commercial Banks, Non-Banking Finance companies, Mutual Funds, State government etc. |
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