SlideShare a Scribd company logo
Introduction to Money Market



        Presented By,
        Muhammad Owais Atta Siddiqui
Financial Markets:

            FINANCIAL
             MARKETS



        MONEY        CAPITAL
        MARKET       MARKET
Investment and Risk Characteristics:
Term: Mostly Short Term i.e. less than a year
Income: Low
Security: Depends upon the issuer
Marketability: Good
Volatility: Low since the term is short
Inflation: Low impact of inflation as term is short
Expected Return: Negotiable/Equivalent to bank deposit
Currency: Available in different currencies
The Six Horses: Why, What, Who, Which,
How and Where ?

•   Why: The Need
•   What: The Definition
•   Who: The Players
•   Which and How: The Product and Process
•   Where: The Resources
Why: The Need
The Need:
•   Need for short term funds by Banks.
•   Outlet for deploying funds on short term basis .
•   Optimize the yield on temporary surplus funds
•   Regulate the liquidity and interest rates in the
    conduct of monetary policy to achieve the
    broad objective of price stability, efficient
    allocation of credit and a stable foreign
    exchange market
What: The Definition
The Definition:
• Money Market is "the centre for dealings,
  mainly short-term character, in money assets.
• It meets the short-term requirements of
  borrower and provides liquidity or cash to the
  lenders.
• It is the place where short-term surplus
  investible funds at the disposal of financial and
  other institutions and individuals are bid by
  borrowers, again comprising Institutions,
  individuals and also the Government itself"
Continued..
• Money market refers to the market for short
  term assets that are close substitutes of money,
  usually with maturities of less than a year.
• A well functioning money market provides a
  relatively safe and steady income-yielding
  avenue..
• Allows the investor institutions to optimize the
  yield on temporary surplus funds
Who: The Players
The Players:
• Central Bank (State Bank of Pakistan).
• Commercial Banks, Co-operative Banks and
  Primary Dealers are allowed to borrow and
  lend.
• Specified Pakistani Financial Institutions,
  Mutual Funds, and certain specified entities are
  allowed to access to Call/Notice money market
  only as lenders.
• Individuals, firms, companies, corporate
  bodies, trusts and institutions can purchase the
  treasury bills, CPs and CDs.
Which and How:
The Products and Process
The Product and Process:

•   Treasury Bills
•   Certificate of Deposit
•   Commercial Paper
•   Local Authority Bills
•   Bills of Exchange
•   Call Deposit
•   Term Deposit
•   Floating Rate Notes
Treasury Bills:
• Treasury bills, commonly referred to as T-Bills are
  issued by Government of Pakistan against their short
  term borrowing requirements.
• T-Bills are the most marketable money market security
  due to its simplicity.
• Their standard maturity periods are 4, 13, 26 or 52
  weeks(1, 3, 6, 12 months)
• One of the money market instruments that are
  affordable to the individual investors.
• T-Bills are considered to be the safest investment.
• They are considered to be risk free as they are backed
  by the government.
Certificate of Deposits:

• A Certificate of Deposit (CD) is a time deposit with
  bank. CDs are generally issued by commercial banks
  but the can be bought through brokerages.

• They bear a specific maturity date (from three months
  to five years, a specified interest rate and can be issued
  in any denomination.

• CDs offer a slightly higher yield than T-Bills because
  of the slightly higher default risk for bank
Commercial Paper:
• Commercial paper is an unsecured, short term loan
  issued by a corporation, typically for financing
  Accounts Receivables and Inventories.

• Maturities on Commercial Papers are no longer than
  nine months, with maturities of between on and two
  months being the average.

• Commercial Paper is a very safe investment because
  the financial situation of a company can easily be
  predicted over a few months.
Where: The Resources
The Resources:
• SBP’s site:
  http://www.sbp.org.pk/

•   Investopedia:
    http://www.investopedia.com/university/moneymarket/

• Pakistan Economist’s site:
  http://www.pakistaneconomist.com/database2/
Questions and Comments

More Related Content

What's hot

Money market Instrument
Money market InstrumentMoney market Instrument
Money market Instrument
Abdul Motaleb
 
Money market instrument ppt
Money market instrument pptMoney market instrument ppt
Money market instrument ppt
PrathamKhurana1
 
092 money market by kanupriya
092 money market by kanupriya092 money market by kanupriya
092 money market by kanupriya
offaq
 
Money market
Money market Money market
Money market
dilawarjan
 
Money market project (2)
Money market project (2)Money market project (2)
Money market project (2)
Joe Ralte
 
Money market
Money marketMoney market
Money Market (2)
Money Market (2)Money Market (2)
Money Market (2)
Pujil Khanna
 
Money market
Money market Money market
Money market
aiswaryausa
 
Call money and certificate of deposit
Call money and certificate of depositCall money and certificate of deposit
Call money and certificate of deposit
Shubham Agrawal
 
Money Market
Money MarketMoney Market
Money Market
DevTech Finance
 
9329365 A Ppt On Money Market
9329365 A Ppt On Money Market9329365 A Ppt On Money Market
9329365 A Ppt On Money Market
Pujil Khanna
 
Money market instruments
Money market instrumentsMoney market instruments
Money market instruments
Kunal Singh
 
Money market
Money marketMoney market
Money market
Rohit Kumar
 
Money market, money market instruments
Money market, money market instrumentsMoney market, money market instruments
Money market, money market instruments
FAST NUCES
 
Money Market In India
Money Market In IndiaMoney Market In India
Money Market In India
Learning Made Simple
 
Money market instrument in bangladesh
Money market instrument in bangladeshMoney market instrument in bangladesh
Money market instrument in bangladesh
Arif Hasan
 
Financial markets & financial instruments
Financial markets & financial instrumentsFinancial markets & financial instruments
Financial markets & financial instruments
Füzuli Aliyev
 
Chapter 2 money market
Chapter 2 money marketChapter 2 money market
Chapter 2 money market
Shivam Singhal
 
Money market instruments
Money market instrumentsMoney market instruments
Money market instruments
RENJU RAJU
 
Money market in India
Money market in IndiaMoney market in India
Money market in India
kavish
 

What's hot (20)

Money market Instrument
Money market InstrumentMoney market Instrument
Money market Instrument
 
Money market instrument ppt
Money market instrument pptMoney market instrument ppt
Money market instrument ppt
 
092 money market by kanupriya
092 money market by kanupriya092 money market by kanupriya
092 money market by kanupriya
 
Money market
Money market Money market
Money market
 
Money market project (2)
Money market project (2)Money market project (2)
Money market project (2)
 
Money market
Money marketMoney market
Money market
 
Money Market (2)
Money Market (2)Money Market (2)
Money Market (2)
 
Money market
Money market Money market
Money market
 
Call money and certificate of deposit
Call money and certificate of depositCall money and certificate of deposit
Call money and certificate of deposit
 
Money Market
Money MarketMoney Market
Money Market
 
9329365 A Ppt On Money Market
9329365 A Ppt On Money Market9329365 A Ppt On Money Market
9329365 A Ppt On Money Market
 
Money market instruments
Money market instrumentsMoney market instruments
Money market instruments
 
Money market
Money marketMoney market
Money market
 
Money market, money market instruments
Money market, money market instrumentsMoney market, money market instruments
Money market, money market instruments
 
Money Market In India
Money Market In IndiaMoney Market In India
Money Market In India
 
Money market instrument in bangladesh
Money market instrument in bangladeshMoney market instrument in bangladesh
Money market instrument in bangladesh
 
Financial markets & financial instruments
Financial markets & financial instrumentsFinancial markets & financial instruments
Financial markets & financial instruments
 
Chapter 2 money market
Chapter 2 money marketChapter 2 money market
Chapter 2 money market
 
Money market instruments
Money market instrumentsMoney market instruments
Money market instruments
 
Money market in India
Money market in IndiaMoney market in India
Money market in India
 

Viewers also liked

Money market www.mobilemoviesite.com
Money market www.mobilemoviesite.comMoney market www.mobilemoviesite.com
Money market www.mobilemoviesite.com
Yasir Butt
 
Risk & Return Analysis - Bonds market in Pakistan
Risk & Return Analysis - Bonds market in PakistanRisk & Return Analysis - Bonds market in Pakistan
Risk & Return Analysis - Bonds market in Pakistan
Syed Jahanzeb Haider
 
Impact of money & quasi money on the economy of Pakistan
Impact of money & quasi money on the economy of PakistanImpact of money & quasi money on the economy of Pakistan
Impact of money & quasi money on the economy of Pakistan
samramalik92
 
Money market intruments lec#5
Money market intruments lec#5Money market intruments lec#5
Money market intruments lec#5
Muhammad Faizan
 
Treasury
TreasuryTreasury
Treasury
Iqbal Ansari
 
CAPITAL MARKET
CAPITAL MARKETCAPITAL MARKET
CAPITAL MARKET
Fariha Ijaz
 
all about libor
all about liborall about libor
all about libor
Siddharth Bhardwaj
 
financial instruments available in Pakistan for investment
financial instruments available in Pakistan for investment  financial instruments available in Pakistan for investment
financial instruments available in Pakistan for investment
Zafar aziz
 
Pakistan Investment Bonds (PIBs)
Pakistan Investment Bonds (PIBs)Pakistan Investment Bonds (PIBs)
Pakistan Investment Bonds (PIBs)
rehaniltifat
 
Organizational setup of a bank treasury
Organizational setup of a bank treasuryOrganizational setup of a bank treasury
Organizational setup of a bank treasury
nitin153
 
Bond valuation
Bond valuationBond valuation
Bond valuation
Online
 
Introduction To Bonds
Introduction To BondsIntroduction To Bonds
Introduction To Bonds
Alan Anderson
 
Treasury operations in_banks
Treasury operations in_banksTreasury operations in_banks
Treasury operations in_banks
Vaibhav Banjan
 
Libor
Libor Libor
Libor
Asmavia Khan
 
Bond valuation
Bond valuationBond valuation
Bond valuation
Badam Venkatareddy
 
functions of money
functions of moneyfunctions of money
functions of money
Jay Shah
 
Pakistan Stock Exchange (PSX)
Pakistan Stock Exchange (PSX)Pakistan Stock Exchange (PSX)
Pakistan Stock Exchange (PSX)
Ahmad Zia Lodin
 
Bond Valuation
Bond ValuationBond Valuation
Bond Valuation
Shiva Pillai
 
6. bond valuation
6. bond valuation6. bond valuation
6. bond valuation
AfiqEfendy Zaen
 
Capital market ppt
Capital market pptCapital market ppt
Capital market ppt
tejasvibhosale
 

Viewers also liked (20)

Money market www.mobilemoviesite.com
Money market www.mobilemoviesite.comMoney market www.mobilemoviesite.com
Money market www.mobilemoviesite.com
 
Risk & Return Analysis - Bonds market in Pakistan
Risk & Return Analysis - Bonds market in PakistanRisk & Return Analysis - Bonds market in Pakistan
Risk & Return Analysis - Bonds market in Pakistan
 
Impact of money & quasi money on the economy of Pakistan
Impact of money & quasi money on the economy of PakistanImpact of money & quasi money on the economy of Pakistan
Impact of money & quasi money on the economy of Pakistan
 
Money market intruments lec#5
Money market intruments lec#5Money market intruments lec#5
Money market intruments lec#5
 
Treasury
TreasuryTreasury
Treasury
 
CAPITAL MARKET
CAPITAL MARKETCAPITAL MARKET
CAPITAL MARKET
 
all about libor
all about liborall about libor
all about libor
 
financial instruments available in Pakistan for investment
financial instruments available in Pakistan for investment  financial instruments available in Pakistan for investment
financial instruments available in Pakistan for investment
 
Pakistan Investment Bonds (PIBs)
Pakistan Investment Bonds (PIBs)Pakistan Investment Bonds (PIBs)
Pakistan Investment Bonds (PIBs)
 
Organizational setup of a bank treasury
Organizational setup of a bank treasuryOrganizational setup of a bank treasury
Organizational setup of a bank treasury
 
Bond valuation
Bond valuationBond valuation
Bond valuation
 
Introduction To Bonds
Introduction To BondsIntroduction To Bonds
Introduction To Bonds
 
Treasury operations in_banks
Treasury operations in_banksTreasury operations in_banks
Treasury operations in_banks
 
Libor
Libor Libor
Libor
 
Bond valuation
Bond valuationBond valuation
Bond valuation
 
functions of money
functions of moneyfunctions of money
functions of money
 
Pakistan Stock Exchange (PSX)
Pakistan Stock Exchange (PSX)Pakistan Stock Exchange (PSX)
Pakistan Stock Exchange (PSX)
 
Bond Valuation
Bond ValuationBond Valuation
Bond Valuation
 
6. bond valuation
6. bond valuation6. bond valuation
6. bond valuation
 
Capital market ppt
Capital market pptCapital market ppt
Capital market ppt
 

Similar to Money market by muhammad owais atta siddiqui

Indian financial markets module 1.pptx
Indian financial markets module 1.pptxIndian financial markets module 1.pptx
Indian financial markets module 1.pptx
AarathySreekala1
 
Money market-
Money market-Money market-
Money market-
Moazzam Danish
 
Money Market and its objectives, importance its Instruments,
Money Market and its objectives, importance its Instruments, Money Market and its objectives, importance its Instruments,
Money Market and its objectives, importance its Instruments,
Zain Ali
 
MONEY MARKET AND CAPITAL MARKET(short project)
MONEY MARKET AND CAPITAL MARKET(short project)MONEY MARKET AND CAPITAL MARKET(short project)
MONEY MARKET AND CAPITAL MARKET(short project)
vijayverma767
 
Gr xii-bs-ch-10-s1
Gr xii-bs-ch-10-s1Gr xii-bs-ch-10-s1
Gr xii-bs-ch-10-s1
Baiju KT
 
money-market.ppt
money-market.pptmoney-market.ppt
money-market.ppt
SIRINET2
 
Money market instruments
Money market instruments Money market instruments
Money market instruments
PraveenDanny
 
Money market-1196263725939724-3[1]
Money market-1196263725939724-3[1]Money market-1196263725939724-3[1]
Money market-1196263725939724-3[1]
Romit Jain
 
Money market & Capital market
Money market & Capital marketMoney market & Capital market
Money market & Capital market
Nowshed Hossain
 
A study of organisedindian money market
A study of organisedindian money marketA study of organisedindian money market
A study of organisedindian money market
md imtiaz khan
 
Indian financial instruments
Indian financial instruments Indian financial instruments
Indian financial instruments
Vivek Sharma
 
Swiggy me know financial_marketchapter2.pptx
Swiggy me know financial_marketchapter2.pptxSwiggy me know financial_marketchapter2.pptx
Swiggy me know financial_marketchapter2.pptx
NeelaChennur
 
Financial markets
Financial marketsFinancial markets
Financial markets
Nikhil Kumar
 
ShortFianance-MBA Notes...Semester 2.pdf
ShortFianance-MBA Notes...Semester 2.pdfShortFianance-MBA Notes...Semester 2.pdf
ShortFianance-MBA Notes...Semester 2.pdf
FarzanMather
 
Money Market.pptx
Money Market.pptxMoney Market.pptx
Money Market.pptx
KhalilNaitBouzid1
 
Financial market (specific to money market)
Financial market (specific to money market)Financial market (specific to money market)
Financial market (specific to money market)
Deepika Tripathi
 
Money market- monetary economics
Money market- monetary economicsMoney market- monetary economics
Money market- monetary economics
Visakh Radhakrishnan
 
Money markets
Money marketsMoney markets
Money market fs
Money market   fsMoney market   fs
Money market fs
Manoj Thadani
 
money market
money marketmoney market
money market
Gourav Priyadarshan
 

Similar to Money market by muhammad owais atta siddiqui (20)

Indian financial markets module 1.pptx
Indian financial markets module 1.pptxIndian financial markets module 1.pptx
Indian financial markets module 1.pptx
 
Money market-
Money market-Money market-
Money market-
 
Money Market and its objectives, importance its Instruments,
Money Market and its objectives, importance its Instruments, Money Market and its objectives, importance its Instruments,
Money Market and its objectives, importance its Instruments,
 
MONEY MARKET AND CAPITAL MARKET(short project)
MONEY MARKET AND CAPITAL MARKET(short project)MONEY MARKET AND CAPITAL MARKET(short project)
MONEY MARKET AND CAPITAL MARKET(short project)
 
Gr xii-bs-ch-10-s1
Gr xii-bs-ch-10-s1Gr xii-bs-ch-10-s1
Gr xii-bs-ch-10-s1
 
money-market.ppt
money-market.pptmoney-market.ppt
money-market.ppt
 
Money market instruments
Money market instruments Money market instruments
Money market instruments
 
Money market-1196263725939724-3[1]
Money market-1196263725939724-3[1]Money market-1196263725939724-3[1]
Money market-1196263725939724-3[1]
 
Money market & Capital market
Money market & Capital marketMoney market & Capital market
Money market & Capital market
 
A study of organisedindian money market
A study of organisedindian money marketA study of organisedindian money market
A study of organisedindian money market
 
Indian financial instruments
Indian financial instruments Indian financial instruments
Indian financial instruments
 
Swiggy me know financial_marketchapter2.pptx
Swiggy me know financial_marketchapter2.pptxSwiggy me know financial_marketchapter2.pptx
Swiggy me know financial_marketchapter2.pptx
 
Financial markets
Financial marketsFinancial markets
Financial markets
 
ShortFianance-MBA Notes...Semester 2.pdf
ShortFianance-MBA Notes...Semester 2.pdfShortFianance-MBA Notes...Semester 2.pdf
ShortFianance-MBA Notes...Semester 2.pdf
 
Money Market.pptx
Money Market.pptxMoney Market.pptx
Money Market.pptx
 
Financial market (specific to money market)
Financial market (specific to money market)Financial market (specific to money market)
Financial market (specific to money market)
 
Money market- monetary economics
Money market- monetary economicsMoney market- monetary economics
Money market- monetary economics
 
Money markets
Money marketsMoney markets
Money markets
 
Money market fs
Money market   fsMoney market   fs
Money market fs
 
money market
money marketmoney market
money market
 

Recently uploaded

1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
qntjwn68
 
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Role of Information Technology in Revenue  - Prof Oyedokun.pptxRole of Information Technology in Revenue  - Prof Oyedokun.pptx
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
G20 summit held in India. Proper presentation for G20 summit
G20 summit held in India. Proper presentation for G20 summitG20 summit held in India. Proper presentation for G20 summit
G20 summit held in India. Proper presentation for G20 summit
rohitsaxena882511
 
DEMAND AND SUPPLY.docx Notes for Economics
DEMAND AND SUPPLY.docx Notes for EconomicsDEMAND AND SUPPLY.docx Notes for Economics
DEMAND AND SUPPLY.docx Notes for Economics
Opanga1
 
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdfTumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Henry Tapper
 
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptxOAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
hiddenlevers
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
sameer shah
 
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfBONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
coingabbar
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
Falcon Invoice Discounting
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
Neal Brewster
 
Sources of Revenue for State Government - Prof Oyedokun.pptx
Sources of Revenue for State Government - Prof Oyedokun.pptxSources of Revenue for State Government - Prof Oyedokun.pptx
Sources of Revenue for State Government - Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
University of Calabria
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
Writo-Finance
 
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
bbeucd
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
VishnuVenugopal84
 
Seminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership NetworksSeminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership Networks
GRAPE
 
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Vighnesh Shashtri
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
Donald Trump Presentation and his life.pptx
Donald Trump Presentation and his life.pptxDonald Trump Presentation and his life.pptx
Donald Trump Presentation and his life.pptx
SerdarHudaykuliyew
 

Recently uploaded (20)

1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
 
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Role of Information Technology in Revenue  - Prof Oyedokun.pptxRole of Information Technology in Revenue  - Prof Oyedokun.pptx
Role of Information Technology in Revenue - Prof Oyedokun.pptx
 
G20 summit held in India. Proper presentation for G20 summit
G20 summit held in India. Proper presentation for G20 summitG20 summit held in India. Proper presentation for G20 summit
G20 summit held in India. Proper presentation for G20 summit
 
DEMAND AND SUPPLY.docx Notes for Economics
DEMAND AND SUPPLY.docx Notes for EconomicsDEMAND AND SUPPLY.docx Notes for Economics
DEMAND AND SUPPLY.docx Notes for Economics
 
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdfTumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
 
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptxOAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
 
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfBONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdf
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
 
Sources of Revenue for State Government - Prof Oyedokun.pptx
Sources of Revenue for State Government - Prof Oyedokun.pptxSources of Revenue for State Government - Prof Oyedokun.pptx
Sources of Revenue for State Government - Prof Oyedokun.pptx
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
 
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
一比一原版(UCSB毕业证)圣芭芭拉分校毕业证如何办理
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
 
Seminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership NetworksSeminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership Networks
 
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
Donald Trump Presentation and his life.pptx
Donald Trump Presentation and his life.pptxDonald Trump Presentation and his life.pptx
Donald Trump Presentation and his life.pptx
 

Money market by muhammad owais atta siddiqui

  • 1. Introduction to Money Market Presented By, Muhammad Owais Atta Siddiqui
  • 2. Financial Markets: FINANCIAL MARKETS MONEY CAPITAL MARKET MARKET
  • 3. Investment and Risk Characteristics: Term: Mostly Short Term i.e. less than a year Income: Low Security: Depends upon the issuer Marketability: Good Volatility: Low since the term is short Inflation: Low impact of inflation as term is short Expected Return: Negotiable/Equivalent to bank deposit Currency: Available in different currencies
  • 4. The Six Horses: Why, What, Who, Which, How and Where ? • Why: The Need • What: The Definition • Who: The Players • Which and How: The Product and Process • Where: The Resources
  • 6. The Need: • Need for short term funds by Banks. • Outlet for deploying funds on short term basis . • Optimize the yield on temporary surplus funds • Regulate the liquidity and interest rates in the conduct of monetary policy to achieve the broad objective of price stability, efficient allocation of credit and a stable foreign exchange market
  • 8. The Definition: • Money Market is "the centre for dealings, mainly short-term character, in money assets. • It meets the short-term requirements of borrower and provides liquidity or cash to the lenders. • It is the place where short-term surplus investible funds at the disposal of financial and other institutions and individuals are bid by borrowers, again comprising Institutions, individuals and also the Government itself"
  • 9. Continued.. • Money market refers to the market for short term assets that are close substitutes of money, usually with maturities of less than a year. • A well functioning money market provides a relatively safe and steady income-yielding avenue.. • Allows the investor institutions to optimize the yield on temporary surplus funds
  • 11. The Players: • Central Bank (State Bank of Pakistan). • Commercial Banks, Co-operative Banks and Primary Dealers are allowed to borrow and lend. • Specified Pakistani Financial Institutions, Mutual Funds, and certain specified entities are allowed to access to Call/Notice money market only as lenders. • Individuals, firms, companies, corporate bodies, trusts and institutions can purchase the treasury bills, CPs and CDs.
  • 12. Which and How: The Products and Process
  • 13. The Product and Process: • Treasury Bills • Certificate of Deposit • Commercial Paper • Local Authority Bills • Bills of Exchange • Call Deposit • Term Deposit • Floating Rate Notes
  • 14. Treasury Bills: • Treasury bills, commonly referred to as T-Bills are issued by Government of Pakistan against their short term borrowing requirements. • T-Bills are the most marketable money market security due to its simplicity. • Their standard maturity periods are 4, 13, 26 or 52 weeks(1, 3, 6, 12 months) • One of the money market instruments that are affordable to the individual investors. • T-Bills are considered to be the safest investment. • They are considered to be risk free as they are backed by the government.
  • 15. Certificate of Deposits: • A Certificate of Deposit (CD) is a time deposit with bank. CDs are generally issued by commercial banks but the can be bought through brokerages. • They bear a specific maturity date (from three months to five years, a specified interest rate and can be issued in any denomination. • CDs offer a slightly higher yield than T-Bills because of the slightly higher default risk for bank
  • 16. Commercial Paper: • Commercial paper is an unsecured, short term loan issued by a corporation, typically for financing Accounts Receivables and Inventories. • Maturities on Commercial Papers are no longer than nine months, with maturities of between on and two months being the average. • Commercial Paper is a very safe investment because the financial situation of a company can easily be predicted over a few months.
  • 18. The Resources: • SBP’s site: http://www.sbp.org.pk/ • Investopedia: http://www.investopedia.com/university/moneymarket/ • Pakistan Economist’s site: http://www.pakistaneconomist.com/database2/