1.

Explain the following term/concept.Money Market

Answer»
  • A market where short-term funds are borrowed and lent is called ‘money market 7. It is a market for financial assets that are close substitutes for money.
  • The instruments dealt within the market are liquid and can be converted quickly into cash at a low transaction cost.

Definition: According to the Reserve Bank of India, “The money market is the center for dealings mainly of short-term characters in money assets; it needs the short-term requirements of borrowers and provides liquidity or cash to the lenders. It is a place where short-term surplus investible funds at the disposal of financial, institutions or individuals are bid by borrower’s agents comprising institutions and individuals and also by the government itself.”


Discussion

No Comment Found

Related InterviewSolutions