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प्रश्न
Answer in brief.
State any four features of money market
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उत्तर
The money market is a market for lending and borrowing of funds for short-term which varies from one day to a year.
The features of the money market are as follows:
1) The funds borrowed and lent in the money market are for the short-term. The maximum period for which the funds are traded in the market is one year.
2) It is a wholesale market for short-term debt as the transaction volume is large.
3) Trading may take place over the telephone, after which written confirmation is done by way of e-mails.
4) Participants of the money market include RBI, commercial banks, mutual funds, financial institutions, primary dealers, and corporates.
5) There is an impersonal relationship between the participants of the money market.
6) Money market has no geographical area i.e. there is no fixed place for carrying out transactions.
7) The instruments of the money market can be converted easily into cash or have very short maturity periods. Moreover, the returns on investment are also low.
8) Major segments of the money market are
i. Call money market
ii. Certificate of deposits market
iii. Treasury bill market
iv. Commercial bill market
v. Commercial papers market
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
A market which provides short term funds
Write a word or a term or a phrase which can substitute the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.
Write a word, or a term, or a phrase which can substitute for the following statement.
A bill which is issued by Reserve Bank of India on behalf of the Government of India.
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
Money market is the market for the long term funds.
State whether the following statement is true or false
Capital market is the market for the long term funds.
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.
In capital market the instruments traded have maturity period of more than ______ year.
Answer in one sentence.
What is call money market?
Answer in one sentence.
What is Certificate of Deposits?
Answer in one sentence.
What is Trade Bill?
Explain the following term/concept.
Repurchase agreement
Explain the following term/concept.
Money market
Explain the following term/concept.
Treasury bills
Answer in brief.
Explain any 4 types of money market instruments.
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?
