The definition of money market says, it is a global financial market used for borrowing and lending. It is used only for short-term lending. It is not applicable for long-term lending. It contains mainly two basic systems one of them is financial institutions, second one is dealers in money or credit who wish to either borrow or lend.
The money market consists of a huge number of participants, from the organization raising money. They were selling the commercial paper into the market to a human being who is ready to invest their money. They are known as investor. As I mentioned above money market is for short term, it is nothing but the borrower can borrow money from several days to one year. In India money market is there from the past two decades only because of its huge growth. In India money market is based on several parameters, one of them is interest. It is also linked with foreign exchange market. There are many advantages for money market some of them are listed below
1. money markets are easily usable
2. one of the most safest investment
3. it is also available in internet, and those are generally getting higher yields
It is the convenient way to make income. Money markets funds offer greater liquidity in this field. The presence of the money market is nothing but the market from which the banks lend or borrow finances to each other, it is never avoided. Money market is free from the interest rates, but still its crating distortions in Indian market. There are many disadvantages is also there.
The money market consists of a huge number of participants, from the organization raising money. They were selling the commercial paper into the market to a human being who is ready to invest their money. They are known as investor. As I mentioned above money market is for short term, it is nothing but the borrower can borrow money from several days to one year. In India money market is there from the past two decades only because of its huge growth. In India money market is based on several parameters, one of them is interest. It is also linked with foreign exchange market. There are many advantages for money market some of them are listed below
1. money markets are easily usable
2. one of the most safest investment
3. it is also available in internet, and those are generally getting higher yields
It is the convenient way to make income. Money markets funds offer greater liquidity in this field. The presence of the money market is nothing but the market from which the banks lend or borrow finances to each other, it is never avoided. Money market is free from the interest rates, but still its crating distortions in Indian market. There are many disadvantages is also there.
Post a Comment