Question

What is Money Market? Discuss different money market instruments.

Answer 1

is that info about your topic related money marketing and various tyoes

Answer 2

• The money market is a market for short-term funds, for a period of 364 days.
• Generally, the Money market is the origin of finance for working capital.
• Transactions of the money market include:
• Lending and borrowing for a short period of time.
• Purchase and sale of securities having a duration of 364 days.
• The money market does not have a fixed geographical location unlike stock exchanges but it includes all the institutions and organizations for short-term debt.

Features of the Money market are as follows:

1. The activities are carried out on a telephone, or mail basis.
2. It is a market for short-term trading.
3. It is not a homogenous market.
4. Assets or securities can be easily converted into cash.
5. Highly liquid
6. Transactions in the money market can be done with or without the use of a broker.

Instruments of the money market are as follows:

1. Call money
2. Treasury bills
3. Certificate of deposit
4. Commercial paper
5. Commercial bill
6. Inter bank participation certificate
7. Repurchase agreement option