Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

FM

Document Sample
FM Powered By Docstoc
					Name : Trivedi Hariom k.


Roll no : 155


Class : T.Y.BBA (B)


Subject: financial market


Topic name: concept of money market




Teacher sign:                     Student sign:
                               Money market

       The money market firms at important part of the financial system by providing an
avenue for equilibrium the surplus fund of lender and the requirement of borrower for
short period ranking for overnight to a year. It also provides a point for central bank.
Intervention for influences the liquidity in the financial system and there by transmitting
the monetary policy influences.

       A money market is a mechanize to which short term firm and borrowed the
through which the large part of the financial transaction of a large part of the financial
transaction of a particular country or of the would are clear broadly consive in include
the entiremechnices employed in financial business of all types.

      1) Traditionally the money market in India comprises mainly the call money
         market all the other money market segment viz. commercial bills market and
         inter corporate deposit there have not been much existence for a long time
         there has been much activity in this segment there for losing the impact of
         reforms of the money market. The focus on mainly on the call money market
         the impact of reforms is assessee in terms of behavior of the call money
         market and the market growth related permitted include those instrument
         which where introduce in 1990.
      2) Remain instrument money market areas follows:
              Certificate of deposit
              Banker acceptance
              Commercial paper
              Treasury bill
              Interbank deposit
              Government securities
      3) The money market in a broad sense includes the followings:
              Discount market
              Bills market
              Bond and stock market
              Capital market
              Short term money market
              Call money market
      4) Money market is short term but in a broad sense they include short term and
         long term market.
5) In encourages the institution and people of the country to save and increasing
   the fund in the economic.
6) It also develops available financial structure the time period of borrowing in
   the money market can be one day to one year.
7) Traditional the money market in India is understood to be the call money
   market but now with the growth in commercial bills money market and
   interbank deposit and corporate deposit market. The other sub markets also
   flourish.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:12/11/2010
language:English
pages:4