‘Money market is essentially a market for short-term funds/ In the l

1.	‘Money market is essentially a market for short-term funds/ In the light of this statement, state any three features of money market.
Answer» Following are the features of money market: 1. Short-term funds – Money market is essentially a market for short-term funds i.e., funds whose perk>4 of maturity is not more than one year. 2. Liquidity – Money market instruments are highly liquid. Money market instruments are close substitutes for money as there is a formal arrangement for their liquidity. 3. Less risky – Money market instruments are generally much safer with a minimum risk of default.

‘Money market is essentially a market for short-term funds/ In the light of this statement, state any three features of money market.

Answer»

Following are the features of money market:

1. Short-term funds – Money market is essentially a market for short-term funds

i.e., funds whose perk>4 of maturity is not more than one year.

2. Liquidity – Money market instruments are highly liquid. Money market instruments are close substitutes for money as there is a formal arrangement for their liquidity.

3. Less risky – Money market instruments are generally much safer with a minimum risk of default.

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‘Money market is essentially a market for short-term funds/ In the light of this statement, state any three features of money market.

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