Instruments Of Money Market


 
 
Concept Explanation
 

Instruments of Money Market

There are certain organization in the financial market which deal in money while keeping a syncs. These institutions combined together are called Money Market.

Money Market Institutions:

  • Government of India and other sovereign bodies.
  • Banks and Development Financial Institutions.
  • PSUs (Public Sector Undertakings.
  • Private sector organizations.
  • The Government /Quasi government owned non - corporate entities.

    Large numbers of instruments that are traded in the money market are issued by Government of India, State governments and other statutory bodies. Instruments that are issued by the Development Financial Institutions [DFI] and banks carry the highest credit ratings amongst non-government issuers mainly due to their connection with the Indian Government.

    Instruments Of Money Market

    Call Money

    Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly Overnight and is open for participation only to schedule commercial banks and the primary dealers. The largest money market is - Mumbai.

    Notice Money

    One financial institution borrow money from another financial institution for 2 days to 14 days.

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