1. #1

    What is meant by Money market?

    what is meant by money market???


  2. #2
    goyalk Array
    Join Date
    Dec 2012

    Re: What is meant by Money market?


    Money market refers to a market where money is lent and borrowed. It is concerned with interest rates, lending rates, bond markets etc. If someone says that money market is reeling under difficulties, it means it is difficult to get loans as there is not much liquidity in the economy. In such cases, interest rates tend to increase and money becomes dearer which means that one has to pay more interest to get loans.


  3. #3
    siyashah Array
    Join Date
    Sep 2012

    Re: What is meant by Money market?

    • Money market is a part or portion of financial market which involves borrowing, lending, buying and selling for a short span of time. The period may be ranging from a few days to a year.
    • It is considered a safe place to put money due to the highly liquid nature of securities and short maturities.
    • It is a mechanism to clear short term monetary transaction in an economy.

    Functions of Money Market:

    • Maintains equilibrium in demand and supply of money for short term transactions.
    • Promotes economic growth by making availability of funds.
    • Provides finance for trade and industry.
    • Helps in capital formation.
    • Helps implementing monetary policy.

  4. #4
    bmahendar Array
    Join Date
    Jun 2012

    Re: What is meant by Money market?

    Dear aspirant!
    Money market stands for 'Market for short term deposit securities, such as Banker's acceptances,commercial papers,repo's,negotiable certificates,of deposit,and treasury bills, with a maturity of one year or less and often 30 days or less..

    Good luck

  5. #5
    cenarocks Array
    Join Date
    Sep 2012

    Re: What is meant by Money market?

    money market means distribution of money.

    money market is a place where money is lent and borrowed.

    money market is connected to following terms;

    ---interset rates

    ---bond market

    ---leading rates etc....

    money market is have difficulty as well as benefit.

    good luck....................

  6. #6
    aashisranjan784 Array
    Join Date
    Aug 2012

    Re: What is meant by Money market?

    Dear Friend

    Money market is defined as the segment of financial market in which financial instruments with high liquidity and with very short maturities are traded.It is one of the basic definition of Money market.

    It is used by the participants for the purpose of lending or borrowing for short term for several days or within a year.

    In other words we can define it as trade between bank and other financial institutions for short term.

    As money becomes commodity,money market becomes financial market for assests for short term lending and borrowing .Money markets and capital markets are parts of financial markets.

    Trading in money market is done over the counter is wholesale

    The main reason for existence of money market is that parties has surplus funds and other people needed cash.

    Functions of money market:

    >>For transferring large amount of sums of money

    >>allow government to raise funds.

    >>determine short term interest rate

    >>help to implement monetary policies.

    Some money market instruments are:

    >>Treasury bills

    >>Money funds

    >>>Certificate of deposit

    >>short lived mortgage.

    Source: Wikipedia

    Hope the information helps you.

    all the best


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