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Question
Justify the following statement.
There are many participants in money market.
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Solution
- 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.
- Participants of the money market include RBI, Central and State governments Public Sector Undertakings, Scheduled commercial banks, Insurance companies, Mutual funds, Non-Banking Finance Companies, Corporates, Primary dealers, etc.
RELATED QUESTIONS
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 that can substitute the following statement.
A market that exclusively deals with the new issue of securities
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.
Find the odd one.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
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.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
| c) __________ | 3) Capital market |
| d) __________ | 4) Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
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.
Repurchase agreement
Explain the following term/concept.
Money market
Explain the following term/concept.
Commercial bills
Answer in brief.
State any four features of money market
Justify the following statement.
Financial markets acts as link between investor and borrower.
