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प्रश्न
Explain the following Money Market Instruments:
Commercial paper
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उत्तर
Commercial papers: Commercial papers are short-term unsecured money market instruments. Introduced in India in 1990, they are promissory notes which are negotiable and transferable. They have a maturity period ranging from a minimum of 15 days to a maximum of one year. They are primarily used by large and creditworthy companies for bridge financing.
संबंधित प्रश्न
‘Zaira Ltd.’ is a large and creditworthy company manufacturing air-conditioned buses for the Indian market. It now wants to export these buses to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market.
a. Name and explain the money market instrument the company can use for the
above purpose.
b. What is the duration for which the company can get funds through this instrument?
c. State any other purpose for which this instrument can be used.
Differentiate between `capital-market' and 'money-market' on the following basis:
Investment outlay
Differentiate between `capital-market' and 'money-market' on the following basis:
Duration
Differentiate between `capital-market' and 'money-market' on the following basis:
Liquidity
Differentiate between 'capital-market' and 'money-market' on the basis of:
Expected return;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Meaning;
Explain the following Money Market Instruments:
Treasury bill
Explain the following Money Market Instruments:
Call money
State any four functions of 'Secondary - Market'.
Capital market is a market for ______.
Primary market is also called as ______.
Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
What is Spot Market?
Differentiate Spot Market from Future Market.
Write a note on Secondary Market.
