Money Market / Section 2
Created by: Siddharth Jogani 1 year, 6 months ago
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Introduction
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Nature of Money Market

  1. It is a market for short-term loanable funds for a period not exceeding one year
  2. It deals with only those assets which can be converted to cash readily without loss and with minimum transaction cost
  3. It is not a single homogeneous market. It comprises of several submarkets, each specializing in a particular type of financing. Eg. Call Money Market, bill market
  4. The components of a money market are the central bank, commercial banks, Non-banking financial companies, discount houses and acceptance houses.
  5. Commercial banks play a dominant role in this market.
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Important Objectives of a ...
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