2. What is money market ?
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 Paper’s etc.
the money market deals with short term debt
securities that mature in a year
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
Market for short-term funds
Deals in financial assets
No formal place
No brokers
Comprises several sub-markets
components
4. Significance of money market
Development of Trade & Industry
Development of Capital Market
Smooth Functioning of Commercial Banks
Effective Central Bank Control
Formulation of suitable monetary policy
5.
6. Constituents of the money market
Call Money Market
Collateral Loan Market
Bill market or Discount Market
Acceptance Market
7. Financial institutions in Money
Market
Commercial Banks
Non-Bank financial institutions
(example: insurance co. & other business corporations)
Acceptance houses
Central Bank