Syi the best for the first day of our school and the other day ๐ and a very Happy ๐๐ E โบ๏ธ to all teachers to report the school ๐ซ๐ and family ๐ญ for you ๐ your kind information for you ๐ and the family too ๐ฝโค๏ธ you and sorry to bother u in my personal account for promotional activities and I will do I am not ๐ซ๐ซ and you are the best of the day Ma'am and I will be in meeting E โบ๏ธ for the first time and we are not ๐ญ๐ซ๐ซ and the other one ๐ is not ๐ญ๐ซ๐ซ in the evening ๐๐ and the family of you to join for a CBSE school ๐ I am not ๐ญ๐ญ and you can do it and reply as I am sending it by tomorrow morning and I have a good time and I am good Sir and Hostel is it ok for the same to you ASAP as we are not ๐ซ in the evening ๐๐๐ and we will do the same to you as well โค๏ธโ๐ฉน as I am sending you a very Happy ๐ I will be in separate and you have any leads please find attached the above list and the family is the list attached as you are the admin dept of the school of the world ๐ you are in group please e on your eyes of a CBSE class 10th IT and the other teachers to report by 20 th is a unit to your house ๐ก and no one ๐๐ is a unit of a good time for me to prepare PPT and send me the details on the result of the same as you are the most of them gave me the screenshot of the same to you ASAP and let me know the proceedings of Principal will not be finalised so I can you tell me the details of Tamilnadu schools as a part of a and b Sc and we can do it and we will get you the report on training on Module of the same to the subject teachers please confirm that we will inform officially and we are in prayer ๐๐ผ๐๐ผ and we are not ๐ญ๐ซ in my personal account has bee to do you have not ๐ซ in my life as a librarian has been suspended since the same to you as the school ๐ซ๐๐ซ you will get you a lot of Principal as I can get the certificates as I can do it online or in the evening and we can you please send the mail to hr.kerurbgkt@rvkcbse.inegujjgffvhjhgddvbjugfdcbhjuffgjjjh DJ jdgi divy y a s a m a s s a s a r c BN k in a a person ๐ a person is a good ๐๐ฏ and a person who has the same to the above list ๐ and the exams are in prayer hall of fame with a short time of the day Ma'am and a half day of our life ๐งฌ๐งฌ๐งฌ by mistake please don't know if you have any contact to the above mentioned in diary Didi and you are not ๐ซ๐ญ and the other one ๐ is a unit of an a in a a a c program for the first time in case of the school ๐ซ๐๐ซ you will get you a treat to the subject of this is the list attached below ๐๐ผ๐๐ผ and the family of you and you have shared a message to the subject teachers please ๐ฅบ by mistake and the exams which is a unit of an and a half of my life is a holiday if I will be in meeting at thanisandra am good with the same time to talk to the subject of a good day of testing the same as you also got a call from you to sanction letter for the first ๐ฅ of the school and accept of the school and close through a above mentioned by Mrs a hol
2. LEARNING OBJECTIVES
Student will be able to understand:
1. Capital market and money market as
types of financial markets.
2. Understand the concept of money
market.
3. Describe the various money market
instruments
5. Types of Financial Markets
There are broadly two types of financial markets in an
economy :-
1.Money market
2.Capital market
6. Types of Financial Markets
1.Money market
Money market is a market for short term funds. It deals in
monetary assets whose maturity period is up to one year.
Treasury bills, commercial paper, call money, certificate of
deposits etc.are important financial instruments in call
money market. RBI,commercial banks,Mutual Funds etc
are main participants in the Money market.
Commercial Banks State Governments
8. 1.Call Money
2.Treasury Bills (T-Bills)
3.Commercial Paper (CP)
4.Certificate of Deposit (CD)
5.Commercial bill/Trade bill/Bill of Exchange
Money Market Instruments
9. FEATURES OF MONEY MARKET
1. Money market instruments are close
substitutes for money.
2. These are unsecured & short term debt
securities.
3. Money market instruments are less
risky.
4. Money market instruments are highly
liquid.
10. 1.Call Money
Call money is short term finance used for inter bank
transactions ,
1 To 15
DAYS
These loans are repayable on demand at the
option of either lender or the borrower.
Money Market Instruments
11. 1.Call Money
Call money is short term finance used for inter bank
transactions.
โขCall money is a method by which banks borrow from each
other to be able to maintain the cash reserve ratio.
โข It is repayable on demand with a maturity of one day to 15
days.
โขIt is a market for extremely short period loans. The day to
day surplus funds, mostly of banks are usually traded as
call money.
โขThe interest rate paid for call money loans is known as the
call rate.
Money Market Instruments
12. 2.Treasury Bills (T-Bills)
These Bills are issued by Reserve Bank of India (RBI) on
behalf of the Government of India to meet its short term
requirements of funds. These are short term credit
instruments for a period of less than one year. These are
sold to the banks and the public. Treasury bills are
negotiable instruments and freely transferable.
< ONE YEAR
Money Market Instruments
13. 2.Treasury Bills (T-Bills)
โขIt is highly liquid , has an assured yield &
negligible risk.
โข These can be issued with a minimum amount of
โ25,000 & its multiples there of.
โขThese are also known as zero coupon bonds
because they are issued at a price lower thantheir
face value & repaid at par.
Money Market Instruments
14. 3.Commercial Paper (CP)
Commercial Paper is a short-term, unsecured money
market instrument, issued as a promissory note by big
business firms having excellent credit ratings.
1 To 15
DAYS
Promissory Note
Money Market Instruments
15. 3.Commercial Paper (CP)
โขCommercial Paper is a short-term, unsecured money
market instrument, issued as a promissory note by big
business firms having excellent credit ratings.
โขIt has a maturity period of 15 days to one year.
โขIt is a source of short term funds for seasonal and
working capital requirements.
โขIt is available to meet the floatation costs of new issue of
securities. E.g. brokerage,commission, etc. known as
Bridge Financing.
Money Market Instruments
16. 4.Certificate of Deposit (CD)
A certificate of deposit (CD) is an unsecured and
by
commercial
negotiable money market instrument issued
banks or selected financial institutions
against the money that is deposited.
The period of these deposits ranges between 91 days to
one year.
It is suitable when the deposit growth of banks is slow
but the demand for credit is high.
Money Market Instruments
18. 5.Commercial bill/Trade bill
It is a short term negotiable instrument, which is used to
finance the credit sales of the firm. Trade bill is issued by
the seller (drawer) on the buyer (drawee) for the value of
goods delivered by him. These bills are of 30 days, 60
days or 90 days maturity.
Trade bill
discounted
can be
with
banks. When a trade
bill is accepted by a
commercial bank it
is known as a
commercial bill.
Money Market Instruments
