This document summarizes the money market. It defines the money market as a market for short term loans with maturities of less than one year. It facilitates borrowing and lending of short term funds using instruments like bills of exchange, bonds, and bankers' acceptances. The money market allows users of short term funds to access capital at reasonable costs and helps maintain equilibrium between short term financial surpluses and deficits. It includes markets for call money, bills, certificates of deposit, commercial paper, and collateral loans. Participants include commercial banks, central banks, acceptance houses, and non-banking financial institutions.

2. Financial market refer to the institutional
arrangement foe dealing in financial assets and
credit instruments of differ type such as
currency cheque , bank deposits , bills, bonds .
TYPES OF FINANCIALMARKET
MONEY MARKET CAPITAL MARKET

3. The money market is a market for short term
loans i.e. less than one year. It refers to the
institutional arrangements facilitating
borrowings and lending of short term funds. In
a money market , funds can be borrowed for a
short period from a day , a week, a month or 3 to
6 months and against a differ type of instrument
, such as bill of exchange , bonds , banker’s
acceptances etc. called “near money”.

4. GEOFFREY CROWTHER in his book
“An outline of money” has stated:-
“Money Mark is a collective name given
to the various forms and institution
that deal with the various grades of
near money”.

5. Trading in money and short term financial assets.
It is market for short term loans having maturity of
less than one year.
It is not a fixed place but an activity which may be
carried in telephone , mail etc.
It dales in money or near money assets that could be
easily converted into cash within a short period of
time without loss.
Transaction in the money market may be conducted
with or without help in brokers.

6. Provide access to users of short term
funds to meet their requirements at reasonable cost.
Maintain equilibrium in the short term
surplus and deficits of funds in the market .
To facilitate central bank it influence and
regulate the liquidity in the market.
To help in transferring surplus fund one sector
to another.

7. STRUCTURE OF MONEY MARKET
COMPONENTS
 Call money market
 Bill market
 Certificate of deposit
 Commercial paper
market
 Collateral loan market
INSTITUTIONS
 Commercial banks
 Central banks
 Acceptance Houses
Non banking financial
institution
 Bill brokers

8.  Lack of integration.
 Disparity of interest rates.
 Seasonal diversity of money market.
 Lack of proper bill market.
 Lack of well organized banking system.

9. Money Market transaction involve
short term instruments with a maturity
of one year or less . Money market
securities are very liquid and are
considered very safe. As a result, they
offer a lower return than other
securities.

10. “It is Very easy to Defeat someone, but it is very
Hard to Win someone”.