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प्रश्न
Justify the following statement.
Money market makes available short term finance through different instruments.
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उत्तर
- In the money market, lending and borrowing of funds take place for a short period of time, which may vary from one day to a year.
- Financial instruments in this market can be easily converted into cash without loss of time and value.
- In other words, money market deals with only those financial instruments which are immediate substitute for money.
- Some of the instruments used in the money market are call and notice money, treasury bills, trade/ commercial bills, commercial papers, certificates of deposits, government securities, repurchase agreements, Money Market Mutual Funds, etc.
- All these instruments have a maturity period of less than a year
- Hence, the money market makes available short-term finance through different instruments.
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संबंधित प्रश्न
Central government is a borrower in the money market through the issue of ______.
Write a word or a term or a phrase that can substitute the following statement.
A market that exclusively deals with the new issue of securities
State whether the following statement is true or false
Capital market is the market for the long term funds.
State whether the following statement is true or false
Secondary market is commonly known as stock market.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
State whether the following statement is true or false
Treasury bills are issued by commercial banks.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Complete the sentence.
When trade bills are accepted by commercial banks, it is known as _________.
Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
| c) __________ | 3) Capital market |
| d) __________ | 4) Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Answer in one sentence.
What is call money market?
Answer in one sentence.
What is Trade Bill?
Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.
Correct the underlined word/s and rewrite the following sentence.
Financial market can be classified as capital market and call money market.
Explain the following term/concept.
Call money market
Explain the following term/concept.
Commercial bills
Answer in brief.
State any four features of money market
Study the following case/situation and express your opinion.
| Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares. |
- Should it go to the primary market or secondary market to issue its shares?
- Should it offer its shares through public offers or rights issues?
- What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
