Ayussh Sanghi is teaching live on Unacademy Plus
Money Market By Ayussh Sanghi Part 1
Definition Money market is a segment of the financial market that trades in short-term financial instruments RBI has defined money market as: "The money market is the centre for dealing mainly of short character, in monetary assets; it meets 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 and other institutions and individuals are bid by borrowers, again comprising institutions and individuals and also by the government."
Money market participants enable short-term borrowing and lending facility to banks, corporations, government. . Short-term financial instruments have a maturity of lday, 1 year or less. These money market instruments are highly liquid in nature. For instance: Treasury bills, Commercial papers, CDs etc
Money market provides a range of financial products and it is easier for investors to withdraw money from the money market. But money market is not as structured as the capital market and gives lesser returns .But money market is not as structured as the capital market and The Commercial banks, RRBs, Co-operative banks form the Indian money market.