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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
Match the pair.
| Group ‘A’ | Group ‘B’ |
| a) Financial market | 1) Long term fund |
| b) Money market | 2) New issue market |
| c) Primary market | 3) Trading of commodities |
| d) Commercial paper | 4) Short term fund |
| 5) Trading of financial securities | |
| 6) Share market | |
| 7) Unsecured promissory note | |
| 8) Secured promissory note |
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 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.
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.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
Find the odd one.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Answer in one sentence.
What is call money market?
Answer in one sentence.
What is Trade Bill?
Explain the following term/concept.
Repurchase agreement
Explain the following term/concept.
Call money market
Explain the following term/concept.
Commercial bills
Justify the following statement.
There are many participants in money market.
Answer the following question
State the instruments in money market.
