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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
Write a word or a term or a phrase which can substitute the following statement.
A market which provides long 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.
Money 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.
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 _______.
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?
Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.
Explain the following term/concept.
Call money market
Explain the following term/concept.
Commercial bills
Answer in brief.
Explain any 4 types of money market instruments.
Justify the following statement.
Financial markets acts as link between investor and borrower.
Answer the following question
State the instruments in money market.
