Question

Answer each of these questions in about one hundred and fifty words:

State the nature of money market. Who are the major participants in the money market?

Answer 1

Money market refers to transactions involving lending and borrowing of money for short periods like a day a week a month or 3 to 6 months. It meets the short term requirements.
The major participants in the market are:

1. Reserve Bank of India
2. Commercial Banks, Cooperative Banks
3. Non-Banking Finance Companies
4. State Government
5. Large Corporate Houses and Mutual Funds
6.  LIC, GIC, UTI, etc.