Money market
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To know the meaning and importance of money market i have prepared to educate the people for better understanding of their business, career and profession. Thanks CA Rukmani
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Money market
The money market deals with short-term lending and borrowing of funds with maturities of less than one year. It includes various instruments such as treasury bills, commercial paper, certificates of deposit, and call/notice money. The money market helps provide short-term funding for participants and allows the central bank to regulate liquidity in the economy. It has grown in recent decades with the introduction of new instruments and the integration of organized and unorganized sectors.
Debt market
The document provides an overview of the Indian debt market. It discusses that the debt market is where fixed income securities are issued and traded, and the government raises money through issuing government securities to fund welfare activities. It describes the advantages of the debt market like low risk and liquidity. It outlines the structure of the Indian debt market including key regulators like SEBI and RBI. It also details the various market segments, participants, instruments and the current trend of government securities making up the largest share. The conclusion states that trading volume in the debt market has increased, resulting in lower bond yields.
Capital Markets
The document provides an overview of capital markets, including its definition, objectives, key components and functions. It discusses the primary and secondary markets, and the major players in capital markets such as brokers, investment bankers, stock exchanges, underwriters, credit rating agencies, corporations, banks/financial institutions, and foreign investors.
Ppt on-money-market-1
The document provides an overview of the money market. It defines the money market as the market for short-term, highly liquid debt instruments with maturities of one year or less, such as treasury bills, commercial paper, and certificates of deposit. These instruments are traded by phone between financial institutions, corporations, brokers, and dealers. The money market helps facilitate short-term borrowing and lending for participants. It consists of various sub-markets that collectively make up this important segment of the financial system.
NON PERFORMING ASSETS (NPA)
Introduction to NPA,Types of NPA,Reasons of NPA,Effects of NPA on Banks,Sarfaeci act 2002,ARC(Assets Reconstruction Companies),
Financial market
Financial markets allow funds to flow between those with a surplus and those with a deficit. They improve economic efficiency by connecting individuals and organizations wanting to borrow funds with those having funds available. There are several types of financial markets including capital markets, money markets, foreign exchange markets, and derivatives markets. These markets are regulated by different entities like RBI, SEBI, IRDA, and FMC. The capital market consists of the primary market for new share/bond issues and the secondary market for subsequent trading of existing securities.
Money markets
The document provides an overview of the Indian money market, including definitions, key participants, instruments, and objectives. The money market deals with short-term lending and borrowing of funds (less than one year) through instruments like treasury bills, commercial paper, certificates of deposit, and repurchase agreements. It aims to provide short-term borrowers access to funds and investors with safe and liquid assets to park surplus funds. The Reserve Bank of India plays an important role in regulating the money market and managing liquidity.
Merchant banking
Merchant banking provides a combination of banking and consultancy services to clients. It assists companies with financial, marketing, managerial, and legal matters from starting a business through ongoing operations. Merchant banks deal primarily in international finance and business loans for companies. They specialize in international trade and serve multinational corporations. Unlike investment banks, merchant banks do not provide regular banking services to the general public. In India, the need for merchant banking grew with the rapid expansion of the primary market for stock issues.
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Money market
The money market deals with short-term lending and borrowing of funds with maturities of less than one year. It includes various instruments such as treasury bills, commercial paper, certificates of deposit, and call/notice money. The money market helps provide short-term funding for participants and allows the central bank to regulate liquidity in the economy. It has grown in recent decades with the introduction of new instruments and the integration of organized and unorganized sectors.
Debt market
The document provides an overview of the Indian debt market. It discusses that the debt market is where fixed income securities are issued and traded, and the government raises money through issuing government securities to fund welfare activities. It describes the advantages of the debt market like low risk and liquidity. It outlines the structure of the Indian debt market including key regulators like SEBI and RBI. It also details the various market segments, participants, instruments and the current trend of government securities making up the largest share. The conclusion states that trading volume in the debt market has increased, resulting in lower bond yields.
Capital Markets
The document provides an overview of capital markets, including its definition, objectives, key components and functions. It discusses the primary and secondary markets, and the major players in capital markets such as brokers, investment bankers, stock exchanges, underwriters, credit rating agencies, corporations, banks/financial institutions, and foreign investors.
Ppt on-money-market-1
The document provides an overview of the money market. It defines the money market as the market for short-term, highly liquid debt instruments with maturities of one year or less, such as treasury bills, commercial paper, and certificates of deposit. These instruments are traded by phone between financial institutions, corporations, brokers, and dealers. The money market helps facilitate short-term borrowing and lending for participants. It consists of various sub-markets that collectively make up this important segment of the financial system.
NON PERFORMING ASSETS (NPA)
Introduction to NPA,Types of NPA,Reasons of NPA,Effects of NPA on Banks,Sarfaeci act 2002,ARC(Assets Reconstruction Companies),
Financial market
Financial markets allow funds to flow between those with a surplus and those with a deficit. They improve economic efficiency by connecting individuals and organizations wanting to borrow funds with those having funds available. There are several types of financial markets including capital markets, money markets, foreign exchange markets, and derivatives markets. These markets are regulated by different entities like RBI, SEBI, IRDA, and FMC. The capital market consists of the primary market for new share/bond issues and the secondary market for subsequent trading of existing securities.
Money markets
The document provides an overview of the Indian money market, including definitions, key participants, instruments, and objectives. The money market deals with short-term lending and borrowing of funds (less than one year) through instruments like treasury bills, commercial paper, certificates of deposit, and repurchase agreements. It aims to provide short-term borrowers access to funds and investors with safe and liquid assets to park surplus funds. The Reserve Bank of India plays an important role in regulating the money market and managing liquidity.
Merchant banking
Merchant banking provides a combination of banking and consultancy services to clients. It assists companies with financial, marketing, managerial, and legal matters from starting a business through ongoing operations. Merchant banks deal primarily in international finance and business loans for companies. They specialize in international trade and serve multinational corporations. Unlike investment banks, merchant banks do not provide regular banking services to the general public. In India, the need for merchant banking grew with the rapid expansion of the primary market for stock issues.
Money market instruments
The document discusses money markets and money market instruments. It defines a money market as a market for short-term financial instruments with maturities of less than one year. Money market instruments allow borrowers to access short-term funds and provide liquidity to lenders. Some key money market instruments discussed include treasury bills, commercial paper, certificates of deposit, commercial bills, and repurchase agreements. The money market plays an important role in economic development by facilitating the flow of funds.
Money Market
The document provides an overview of money markets, including characteristics, participants, purposes, risks, and securities. Money markets are used by participants to borrow and lend in the short term, from days to under a year. They facilitate the transfer of short-term funds between entities with excess and deficient funds. Key money market securities include treasury bills, commercial paper, certificates of deposit, and repurchase agreements.
Call Money
Call Money
Notice Money
Definition of Call Money
Definition of Notice Money
FEATURES OF CALL MONEY
CALL MONEY MARKET
REASONS FOR EXISTENCE OF CALL MONEY
IMPACT OF CALL MONEY
Debt market in india
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
Bill discounting (1)
Bill discounting allows sellers to receive immediate payment from banks or non-bank financial companies by discounting bills of exchange they receive from buyers. The seller presents the bill of exchange along with supporting documents to the discounting entity and receives immediate payment at a discounted rate. This provides sellers with liquidity before the bill reaches maturity. Common types of bills include demand bills, usance bills, documentary bills, and clean bills. Discounters assess creditworthiness and only discount bills that are backed by genuine trade transactions to avoid fraudulent practices like kite flying.
Unit 5- Financial Services
This document provides an overview of financial services. It begins by defining financial services as services provided by the finance industry, including banks, credit companies, insurance companies, brokerages, and investment funds.
The document then discusses various types of financial services such as banking services, investment services, insurance, and examples of each. It also covers the importance of financial services for economic growth, promotion of savings and investments, and risk minimization. Finally, it distinguishes between fund-based financial services that involve raising and investing funds, and fee-based services involving specialized activities like stock broking, credit ratings, and asset securitization.
Debt market
The document provides an overview of key concepts in the Indian debt and money markets. It discusses the various players and instruments in these markets such as government securities, treasury bills, commercial papers, certificates of deposit, and repos. It also explains important terms like repo rate, yield curve, yield to maturity, duration, and interest rate swaps. The presentation aims to educate investors on debt market instruments and how interest rates impact their prices and returns.
Money market
to know the concept and requirement of money market this slid help to learn and take the right decision.
Thanks
CA Rukmani
Credit Rating
The document provides information on credit ratings. It begins by defining credit and explaining what a credit rating is. A credit rating evaluates a debtor's ability to repay debt and the likelihood of default. It is determined by credit rating agencies based on both public and private information. The document then discusses the different types of ratings including sovereign, short term, and corporate credit ratings. It provides details on the rating scales and categories used by major agencies. The benefits of credit ratings for both investors and companies are outlined. Finally, it discusses some leading credit rating agencies globally and domestically in India.
Govt. securities market ppt
This document provides an overview of the Government Securities Market (GSM) in India. It discusses:
- What government securities are and how they are issued by the government to fund its activities.
- The key types of government securities including treasury bills, cash management bills, treasury notes, bonds, and zero coupon bonds.
- The major holders of government securities like commercial banks, insurance companies, and the Reserve Bank of India.
- The strengths of the GSM like its large size, well-regulated primary dealers, and sound depository system.
- Some weaknesses like potential for fiscal dominance outpacing demand and a skewed investor base.
Money market
This document provides an overview of the Indian money market, including its meaning, key features, instruments, and recent developments. It discusses the structure and components of the Indian money market, such as the call money market, commercial bills market, acceptance market, and treasury bill market. It also outlines some features and deficiencies of the Indian money market, such as the existence of unorganized sectors, absence of integration, and limited instruments. Recent developments that have helped strengthen the Indian money market are also summarized, such as the integration of organized and unorganized sectors, introduction of new instruments, and establishment of organizations to support the market.
FINANCIAL MARKET
Financial markets facilitate the buying and selling of financial instruments between savers and investors. They act as intermediaries that allow households to deposit surplus funds with banks or purchase securities from businesses, and allow businesses to access funds from households. Financial markets have several key functions, including mobilizing savings, facilitating price discovery, providing liquidity to financial assets, and reducing transaction costs. The major financial markets in India are the money market, stock market, and bond market. The money market deals in short-term debt instruments with maturities of up to one year and includes sub-markets for call money, treasury bills, commercial paper, and certificates of deposit.
Bond investment analysis
- The document discusses various types of bonds such as government bonds, corporate bonds, convertible bonds, and stripped bonds. It also covers bond valuation metrics like yield to maturity, current yield, and spot interest rate.
- Key bond risk factors are discussed like default risk, interest rate risk, and reinvestment risk. Bond immunization strategies are also summarized which aim to minimize interest rate risk by matching duration.
- The document provides examples of bond valuation using the bond price formula and defines duration as a measure of interest rate sensitivity for bonds.
Bond market in india
A bond is a loan in the form of a security where the issuer borrows money from investors. Bonds are used by firms and governments to finance long-term investments and are traded on primary and secondary markets. The bond market is large, with over $65 trillion in bonds outstanding worldwide in 2007. Bonds have features like maturity date, coupon rate, and call provisions that are defined in the indenture contract between the issuer and investors. The main risks to bond investors include interest rate risk, credit risk, inflation risk, and liquidity risk.
Money Market
The document discusses money markets, including their meaning, importance, instruments, and participants. It defines money markets as markets for financial assets that are close substitutes for money with maturities of 1 year or less. Key instruments traded include treasury bills, commercial papers, certificates of deposits, and commercial bills. Major participants include the Reserve Bank of India, commercial banks, mutual funds, corporations, and non-banking financial companies. The money market helps balance short-term supply and demand of funds and allows the central bank to influence interest rates.
International bond market
This document summarizes the international bond market. It defines international bonds as bonds issued in a currency other than that of the investor or broker, including eurobonds issued in a foreign currency and foreign bonds issued by a foreign government or corporation. International bonds are further classified as euro bonds denominated in a currency but sold internationally, foreign bonds offered by a foreign borrower domestically, and global bonds issued and traded outside the currency's home country. The document also lists some key features and types of international bonds such as corporate bonds, government bonds, zero-coupon bonds, convertible bonds, and floating rate notes.
CIBIL
CIBIL is India's first Credit Information Bureau established in 2000 as a repository of credit information on commercial and consumer borrowers. It collects data from its member institutions including banks, NBFCs, and other lenders to create credit reports on borrowers. These reports provide members with insights into applicants' credit histories and repayment records to facilitate more informed lending decisions. CIBIL's products and services help both lenders to better assess risk and price loans, and borrowers to demonstrate responsible credit behavior and more easily access financing.
Chapter 09_The Money Markets
The document discusses money markets and the various securities traded within them. Money markets provide short-term funding for participants and a place for investors to store excess cash. Major securities discussed include Treasury bills, certificates of deposit, commercial paper, and repurchase agreements. These instruments vary in issuers, maturity length, and liquidity. Money markets help corporations and governments manage mismatches between cash inflows and outflows.
Credit control by RBI
The document discusses credit control methods used by the Reserve Bank of India (RBI). It outlines both quantitative and qualitative methods. Quantitative methods like bank rate, open market operations, cash reserve ratio, and statutory liquidity ratio aim to control the total volume of credit. Qualitative methods like rationing credit, margin requirements, and directives aim to influence the use and direction of credit flows. The RBI uses these various tools to promote economic stability and growth.
“INTERMEDIARIES IN NEW ISSUE MARKET”
This document discusses the various intermediaries involved in the new issue market for securities. It describes the roles of merchant bankers/lead managers, underwriters, bankers to the issue, registrars to the issue, debenture trustees, and brokers. Merchant bankers manage public issues and ensure regulatory compliance. Underwriters guarantee that unsold shares will be purchased. Bankers to the issue accept application money. Registrars design application forms and manage allotment. Debenture trustees safeguard debenture holders' interests. Brokers procure subscriptions from investors. Each intermediary plays an important but distinct role in facilitating the issuance of new securities.
Module 28 the money market
The document discusses the money market and how the equilibrium interest rate is determined by the interaction of money demand and money supply. It explains that:
1) The money demand curve slopes downward as a higher interest rate increases the opportunity cost of holding money.
2) The equilibrium interest rate occurs where the money demand curve intersects the vertical money supply curve, where the quantity of money demanded equals the quantity supplied.
3) Changes in factors like prices, GDP, technology, and banking regulations can cause the money demand curve to shift, changing the equilibrium interest rate.
Market Equilibrium
The document discusses market equilibrium, which occurs at the price where the quantity supplied equals the quantity demanded. This equilibrium price is found at the intersection of the supply and demand curves. At the equilibrium point, the market is balanced, with no excess supply or demand. Disequilibrium can occur if there is a shortage when demand exceeds supply, or a surplus when supply exceeds demand. The document also discusses how changes in supply or demand affect the equilibrium price and quantity, and introduces the concepts of consumer surplus and producer surplus.
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Money market instruments
The document discusses money markets and money market instruments. It defines a money market as a market for short-term financial instruments with maturities of less than one year. Money market instruments allow borrowers to access short-term funds and provide liquidity to lenders. Some key money market instruments discussed include treasury bills, commercial paper, certificates of deposit, commercial bills, and repurchase agreements. The money market plays an important role in economic development by facilitating the flow of funds.
Money Market
The document provides an overview of money markets, including characteristics, participants, purposes, risks, and securities. Money markets are used by participants to borrow and lend in the short term, from days to under a year. They facilitate the transfer of short-term funds between entities with excess and deficient funds. Key money market securities include treasury bills, commercial paper, certificates of deposit, and repurchase agreements.
Call Money
Call Money
Notice Money
Definition of Call Money
Definition of Notice Money
FEATURES OF CALL MONEY
CALL MONEY MARKET
REASONS FOR EXISTENCE OF CALL MONEY
IMPACT OF CALL MONEY
Debt market in india
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
Bill discounting (1)
Bill discounting allows sellers to receive immediate payment from banks or non-bank financial companies by discounting bills of exchange they receive from buyers. The seller presents the bill of exchange along with supporting documents to the discounting entity and receives immediate payment at a discounted rate. This provides sellers with liquidity before the bill reaches maturity. Common types of bills include demand bills, usance bills, documentary bills, and clean bills. Discounters assess creditworthiness and only discount bills that are backed by genuine trade transactions to avoid fraudulent practices like kite flying.
Unit 5- Financial Services
This document provides an overview of financial services. It begins by defining financial services as services provided by the finance industry, including banks, credit companies, insurance companies, brokerages, and investment funds.
The document then discusses various types of financial services such as banking services, investment services, insurance, and examples of each. It also covers the importance of financial services for economic growth, promotion of savings and investments, and risk minimization. Finally, it distinguishes between fund-based financial services that involve raising and investing funds, and fee-based services involving specialized activities like stock broking, credit ratings, and asset securitization.
Debt market
The document provides an overview of key concepts in the Indian debt and money markets. It discusses the various players and instruments in these markets such as government securities, treasury bills, commercial papers, certificates of deposit, and repos. It also explains important terms like repo rate, yield curve, yield to maturity, duration, and interest rate swaps. The presentation aims to educate investors on debt market instruments and how interest rates impact their prices and returns.
Money market
to know the concept and requirement of money market this slid help to learn and take the right decision.
Thanks
CA Rukmani
Credit Rating
The document provides information on credit ratings. It begins by defining credit and explaining what a credit rating is. A credit rating evaluates a debtor's ability to repay debt and the likelihood of default. It is determined by credit rating agencies based on both public and private information. The document then discusses the different types of ratings including sovereign, short term, and corporate credit ratings. It provides details on the rating scales and categories used by major agencies. The benefits of credit ratings for both investors and companies are outlined. Finally, it discusses some leading credit rating agencies globally and domestically in India.
Govt. securities market ppt
This document provides an overview of the Government Securities Market (GSM) in India. It discusses:
- What government securities are and how they are issued by the government to fund its activities.
- The key types of government securities including treasury bills, cash management bills, treasury notes, bonds, and zero coupon bonds.
- The major holders of government securities like commercial banks, insurance companies, and the Reserve Bank of India.
- The strengths of the GSM like its large size, well-regulated primary dealers, and sound depository system.
- Some weaknesses like potential for fiscal dominance outpacing demand and a skewed investor base.
Money market
This document provides an overview of the Indian money market, including its meaning, key features, instruments, and recent developments. It discusses the structure and components of the Indian money market, such as the call money market, commercial bills market, acceptance market, and treasury bill market. It also outlines some features and deficiencies of the Indian money market, such as the existence of unorganized sectors, absence of integration, and limited instruments. Recent developments that have helped strengthen the Indian money market are also summarized, such as the integration of organized and unorganized sectors, introduction of new instruments, and establishment of organizations to support the market.
FINANCIAL MARKET
Financial markets facilitate the buying and selling of financial instruments between savers and investors. They act as intermediaries that allow households to deposit surplus funds with banks or purchase securities from businesses, and allow businesses to access funds from households. Financial markets have several key functions, including mobilizing savings, facilitating price discovery, providing liquidity to financial assets, and reducing transaction costs. The major financial markets in India are the money market, stock market, and bond market. The money market deals in short-term debt instruments with maturities of up to one year and includes sub-markets for call money, treasury bills, commercial paper, and certificates of deposit.
Bond investment analysis
- The document discusses various types of bonds such as government bonds, corporate bonds, convertible bonds, and stripped bonds. It also covers bond valuation metrics like yield to maturity, current yield, and spot interest rate.
- Key bond risk factors are discussed like default risk, interest rate risk, and reinvestment risk. Bond immunization strategies are also summarized which aim to minimize interest rate risk by matching duration.
- The document provides examples of bond valuation using the bond price formula and defines duration as a measure of interest rate sensitivity for bonds.
Bond market in india
A bond is a loan in the form of a security where the issuer borrows money from investors. Bonds are used by firms and governments to finance long-term investments and are traded on primary and secondary markets. The bond market is large, with over $65 trillion in bonds outstanding worldwide in 2007. Bonds have features like maturity date, coupon rate, and call provisions that are defined in the indenture contract between the issuer and investors. The main risks to bond investors include interest rate risk, credit risk, inflation risk, and liquidity risk.
Money Market
The document discusses money markets, including their meaning, importance, instruments, and participants. It defines money markets as markets for financial assets that are close substitutes for money with maturities of 1 year or less. Key instruments traded include treasury bills, commercial papers, certificates of deposits, and commercial bills. Major participants include the Reserve Bank of India, commercial banks, mutual funds, corporations, and non-banking financial companies. The money market helps balance short-term supply and demand of funds and allows the central bank to influence interest rates.
International bond market
This document summarizes the international bond market. It defines international bonds as bonds issued in a currency other than that of the investor or broker, including eurobonds issued in a foreign currency and foreign bonds issued by a foreign government or corporation. International bonds are further classified as euro bonds denominated in a currency but sold internationally, foreign bonds offered by a foreign borrower domestically, and global bonds issued and traded outside the currency's home country. The document also lists some key features and types of international bonds such as corporate bonds, government bonds, zero-coupon bonds, convertible bonds, and floating rate notes.
CIBIL
CIBIL is India's first Credit Information Bureau established in 2000 as a repository of credit information on commercial and consumer borrowers. It collects data from its member institutions including banks, NBFCs, and other lenders to create credit reports on borrowers. These reports provide members with insights into applicants' credit histories and repayment records to facilitate more informed lending decisions. CIBIL's products and services help both lenders to better assess risk and price loans, and borrowers to demonstrate responsible credit behavior and more easily access financing.
Chapter 09_The Money Markets
The document discusses money markets and the various securities traded within them. Money markets provide short-term funding for participants and a place for investors to store excess cash. Major securities discussed include Treasury bills, certificates of deposit, commercial paper, and repurchase agreements. These instruments vary in issuers, maturity length, and liquidity. Money markets help corporations and governments manage mismatches between cash inflows and outflows.
Credit control by RBI
The document discusses credit control methods used by the Reserve Bank of India (RBI). It outlines both quantitative and qualitative methods. Quantitative methods like bank rate, open market operations, cash reserve ratio, and statutory liquidity ratio aim to control the total volume of credit. Qualitative methods like rationing credit, margin requirements, and directives aim to influence the use and direction of credit flows. The RBI uses these various tools to promote economic stability and growth.
“INTERMEDIARIES IN NEW ISSUE MARKET”
This document discusses the various intermediaries involved in the new issue market for securities. It describes the roles of merchant bankers/lead managers, underwriters, bankers to the issue, registrars to the issue, debenture trustees, and brokers. Merchant bankers manage public issues and ensure regulatory compliance. Underwriters guarantee that unsold shares will be purchased. Bankers to the issue accept application money. Registrars design application forms and manage allotment. Debenture trustees safeguard debenture holders' interests. Brokers procure subscriptions from investors. Each intermediary plays an important but distinct role in facilitating the issuance of new securities.
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Module 28 the money market
The document discusses the money market and how the equilibrium interest rate is determined by the interaction of money demand and money supply. It explains that:
1) The money demand curve slopes downward as a higher interest rate increases the opportunity cost of holding money.
2) The equilibrium interest rate occurs where the money demand curve intersects the vertical money supply curve, where the quantity of money demanded equals the quantity supplied.
3) Changes in factors like prices, GDP, technology, and banking regulations can cause the money demand curve to shift, changing the equilibrium interest rate.
Market Equilibrium
The document discusses market equilibrium, which occurs at the price where the quantity supplied equals the quantity demanded. This equilibrium price is found at the intersection of the supply and demand curves. At the equilibrium point, the market is balanced, with no excess supply or demand. Disequilibrium can occur if there is a shortage when demand exceeds supply, or a surplus when supply exceeds demand. The document also discusses how changes in supply or demand affect the equilibrium price and quantity, and introduces the concepts of consumer surplus and producer surplus.
Demand, Supply, and Market Equilibrium
Firms produce goods and services, which are sold in output markets to households. Households supply resources like labor in input markets to firms. Market equilibrium exists where quantity supplied equals quantity demanded, resulting in no incentive for prices to change. A change in demand or supply can shift the curves, impacting equilibrium price and quantity. Higher demand increases price and quantity while higher supply decreases price but increases quantity at the new equilibrium.
Money Market Graph 2003
The document discusses the money market graph and how it is used to illustrate short-term interest rates. It explains that the Federal Reserve has three main policy tools to change the money supply curve: open market operations, changing the discount rate, and changing reserve requirements. Adjusting these tools can shift the money supply curve to either increase or decrease the money supply and nominal interest rates, pursuing either an expansionary or contractionary monetary policy.
Market equilibrium
This document discusses market equilibrium using supply and demand curves. It defines market equilibrium as the price and quantity where the supply and demand curves intersect. An example problem demonstrates how to find the equilibrium point by setting the supply and demand equations equal to each other and solving the system of equations. The document also provides practice problems asking the reader to find equilibrium points, highest and lowest prices, and quantities supplied and demanded given supply and demand equations.
Module 29 the market for loanable funds
The document discusses the market for loanable funds, which matches savers and borrowers. Financial intermediaries like banks facilitate this process by taking deposits from savers and making loans to borrowers. The equilibrium interest rate is determined by the supply and demand for loanable funds in the market. Factors like government spending, inflation expectations, and private savings can cause shifts in supply and demand and changes to the equilibrium rate.
Demand & supply of money
This document discusses demand for and supply of money, including definitions of money, functions of money, types of money, and components of the money supply. It also explains the role of commercial banks in the process of deposit creation. Specifically, it outlines how commercial banks can expand the money supply through credit creation and the process of multiple expansion of credit, where a new deposit in the banking system can generate new loans and deposits greater than the initial amount through the actions of various banks. The central bank also influences the money supply.
Bill of lading
A bill of lading is a document issued by a carrier that details the shipment of merchandise and gives title to the specified party. It serves as a receipt for accepted cargo and must be presented at the destination to take delivery. There are two types: a negotiable bill of lading requires the original document to release cargo, while a non-negotiable bill allows release with a copy, stamp, or authorization letter instead of the original.
Pgdibo e 2016-17
The document provides information about the Master of Commerce (M.Com) program assignments for the first year at the Indira Gandhi National Open University for the July 2016 and January 2017 admission cycles. It explains that students must complete one Tutor Marked Assignment for each of the six courses, which are assigned 30% of the final assessment. Assignments must be submitted by March 15 to be eligible for the June term-end exam or by September 15 for the December term-end exam. The document then provides the assignment questions for each of the six courses, which cover topics like international business environment, international marketing management, India's foreign trade, export-import procedures and documentation, international marketing logistics, and international business finance.
The Money Supply
The document provides an overview of the money supply and the Federal Reserve System in the United States. It defines different measures of money including M1, M2 and discusses how banks create money through fractional reserve banking. It then explains the role of the Federal Reserve in controlling the money supply through tools like required reserve ratios, open market operations, and interest rates.
Money supply
This document discusses monetary aggregates and money supply. It defines M1, M2, and M3 as measures of the money supply that include various types of deposits and funds. It explains that the demand for money (Md) depends on transaction levels and interest rates, and that the central bank controls the monetary base which expands the money supply through banking. The relationship between money supply, monetary policy, inflation, and economic growth is also examined.
Techniques in marketing research
This document provides an overview and categorization of various marketing research techniques. It separates the techniques into mature techniques that have been used for some time, such as correlation analysis and regression analysis, and modern techniques that are newer, such as decision trees, dynamic programming, and technological forecasting. For several of the techniques, a brief explanation of the approach is given. The overall purpose is to familiarize management with the key research tools used by researchers.
Determinant of Money Supply
The document discusses factors that determine the money supply and the money multiplier. It defines the monetary base (MB) as currency in circulation plus reserves, and M1 as currency plus checkable deposits. The money multiplier relates these, with M1 equal to the multiplier times MB. The multiplier depends on the currency ratio, reserve ratio, and excess reserves ratio. Changes in these ratios, such as due to bank panics, can impact the money supply by altering the multiplier. The Fed has more control over MB than M1 due to additional influencing factors.
HEDGING
This presentation discusses hedging as a tool for offsetting exchange rate risk. It covers different types of hedging techniques including forward market hedges, money market hedges, and hedging with swaps. Forward market hedges use forward contracts to lock in exchange rates for expected foreign currency cash flows. Money market hedges involve borrowing and lending in different currencies to lock in home currency values. Swaps allow two companies with foreign currency receivables and payables to exchange them, effectively hedging each other's exchange rate risk. Examples are provided to illustrate how each hedging technique works.
BALANCE OF PAYMENT
This document provides an overview of balance of payments (BOP) accounting. It defines BOP as a systematic record of all economic transactions between a country and the rest of the world. It notes that BOP has three main components: the current account balance, capital account balance, and the overall BOP. The current account tracks goods/services exports and imports, while the capital account tracks financial flows. The document also discusses factors that can cause BOP disequilibriums and monetary/non-monetary policy tools to correct imbalances, such as devaluation, export promotion, and tariffs.
Logistic management
Logistics involves planning and coordinating the efficient flow of goods and services from suppliers to customers. It integrates information, transportation, inventory, warehousing and packaging. The goal of logistics management is to deliver products to customers with the highest service levels at the lowest possible cost. Effective logistics can provide a competitive advantage by differentiating a company through lower costs or better customer service than competitors. Logistics management aims to strategically coordinate procurement, production and distribution to maximize profitability through fulfilling customer orders in a cost-effective manner.
Demand and supply money
The document discusses the demand and supply of money. It defines different measures of the money supply (M1, M2, M3) which include currency, checkable deposits, savings deposits, money market funds and other savings instruments. The amount of money in circulation depends on how much is demanded by individuals and businesses for transactions and storing wealth. The supply of money is determined by monetary authorities like the Federal Reserve and expands/contracts to meet business needs. Money derives its value from its functions as a medium of exchange, store of value and unit of account which depend on it maintaining stability and purchasing power over time.
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- 1. CASE STUDY ON MONEY MARKET CA RUKMANI
- 2. INDEX • Introduction of Money Market • Objective of Money Market • Money Market Instruments • Case study on Inter Banking Deposits • Challenges Faced by the Bank • Relevancy of Repo • Relation between Repo Rate and inter banking Rate • Exception of this Relationship • Effect of Repo on Inflation • Conclusion
- 3. Introduction of Money market • Money market transactions are generally used for funding the transactions in other markets including government securities market and meeting short term liquidity mismatches. Within one year depending upon the tenors, money market is classified into: • a) Overnight Market : The tenure of transactions is one working day. • b) Notice Money Market: The tenure of the transaction is from 2 days to 14 working Days. • c) Term Money Market: The tenure of the transaction is from 15 working days to one year
- 4. Objectives of Money Market Equilibrium Mechanism for Evening Out Focal point for Central Bank intervention Reasonable access to short term money requirenment
- 6. • Call Money: Are those moneys which are lent where the borrower has to repay the funds when called on to so by the lender • Notice Money : Are those moneys where the lender has to give a certain number of days’ Notice, which has been agreed on at the time of contract, to the borrower to repay the funds. • Term Money : It refers to those borrowing/ lending transactions between the inter-bank participants which have tenors greater than 14 days. • Bank Fixed Deposits: Scheduled commercial Banks and Co-operative Banks accept term deposits for a period of 7 days and above. » Contd…….
- 7. • Certificates of Deposits: It is negotiable money market instruments and issued in dematerialized form or as a usance Promissory note, for funds deposited at a bank or other eligible financial institution for a specified time period. • Commercial Papers: It is an unsecured money market instruments issued in the form of Promissory Notes. • Bill Rediscounting Scheme: Bank in their normal course of business discount bills of exchange. To provide liquidity and to promote the bill culture in the economy, the RBI formulated a scheme whereby a bank may raise funds by issue of Usance Promissory Notes in Convenient lots and maturities on the strength of genuine trade bills discounted by it. Contd…
- 8. • Inter – Bank Participants Certificates (IBPCs): the Banks can raise money/ deploy short-term surplus. In the case of IBPCs the borrowing bank passes/ sell Loans and credit that is has been in its books, for a temporary periods. • Collateralized Borrowing and lending Obligations ( CBLO): it is a discounted instruments available in the electronic book entry form for the maturity period ranging from one day to 9 days • Treasury Bills: Treasury Bills is a short term money market instrument issued by the Government of India (GOI) through the RBI. • Contd…
- 9. • Repurchase Agreements (Repos): Repo is a Money market mechanism, which enables collateralized short term borrowing and lending through sale/purchase operations in debt instruments.
- 10. Case Study • Between Canara Bank and Syndicate Bank, there is a movement of deposits to the extent of Rs 10,000 crores on a day but the customer has assured that he will reverse move it on eighth day. Explain what are the challenges faced by the banks and how repo will be relevant between them. Assuming your own interest rates, illustrate the relation between repo rate and the interest rate that will be offered by the receiving bank on this short term deposit.
- 11. Challenges faced by Bank FUNDING LIQUIDITY RISK Capture the inability to serve its liability as they fall due When market dysfunctional or strained, bank faces a greater risk which in extreme cases result in insolvency
- 13. Relevancy of Repo • Providing an efficient source of money market funding • Providing a secure home for liquid • Broadening and stabilizing the money market • Facilitating central bank operations • Hedging primary debt issuance » Contd…
- 14. • Hedging and pricing derivatives • Fostering price discovery • Preventing settlement failures • Preventing market ‘squeezes’ • Permitting faster settlement times • contd…..
- 16. Relation Between Repo Rate and Inter Banking Deposit Rate • If RBI increase the repo rate then the inter banking deposit rates will increased. • And if RBI decrease the repo rate then the Bank rates will also be decreased. • Repo rate and inter banking rate are complementary to each other.
- 18. Effect of Repo on Inflation
- 19. Exception of this Relationship • These relationship does not exist in the following cases: – Non-Banking Financial Institution – Banks do not approach RBI for Credit – Profit margins in speculative dealings are so high.
- 20. Conclusion • Money market is the lending market whose tenure is upto one year. • There are many instruments through which money are flowing in the economy. • Repo are transaction which occur between central bank of the country and other banks. • When repo rate of the country are increased then other lending rate will also move and vice versa. • Repo regulate the liquidity of the market and also helpful to control the inflation of the economy.