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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?
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Solution
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:
- Reserve Bank of India
- Commercial Banks, Cooperative Banks
- Non-Banking Finance Companies
- State Government
- Large Corporate Houses and Mutual Funds
- LIC, GIC, UTI, etc.
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