2. What is money market ?
ď§ Money Market is a short-term credit market
which deals with relatively liquid and quick
marketable financial assets such as Treasury
Bills, Commercial Bills, Certificates of
Deposit, Commercial Paperâs etc.
ď§ the money market deals with short term debt
securities that mature in a year
ď§ The money market securities are traded over the
phone or any electronic system unlike the bond
market that trade in exchanges through brokers.
3. Features of Money Market
ď§ Market for short-term funds
ď§ Deals in financial assets
ď§ No formal place
ď§ No brokers
ď§ Comprises several sub-markets
ď§ components
4. Significance of money market
ď§ Development of Trade & Industry
ď§ Development of Capital Market
ď§ Smooth Functioning of Commercial Banks
ď§ Effective Central Bank Control
ď§ Formulation of suitable monetary policy
5.
6. Constituents of the money market
ď§ Call Money Market
ď§ Collateral Loan Market
ď§ Bill market or Discount Market
ď§ Acceptance Market
7. Financial institutions in Money
Market
ď§ Commercial Banks
ď§ Non-Bank financial institutions
(example: insurance co. & other business corporations)
ď§ Acceptance houses
ď§ Central Bank