CHAPTER 16. MONEY MARKET
MEANING OF MONEY MARKET:
1) The money market is a market for lending and borrowing of short term funds.
2) Money market deals in different types of financial instrument such as commercial bills, commercial papers, short term government securities, banker's acceptance etc. having short term maturities.
3) Money market activities are undertaken by electronic communication,
4) In money market instrument, financial instrument are closed substitutes for money called near money.
5) Money market is a market where financial instruments are short term nature and highly liquid.
6) A money market instrument is that it is liquid and can be turned into money quickly at low cost.
DEFINATION OF MONEY MARKET:
According to Crowther, "The money market is the collective name given to the various firms and institutions that deal in the various grades of near money."
The main players in the money market are government, RBI, commercial banks, non-banking financial institutions etc.
Money market regulated by both RBI and SEBI.
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