Skip to main content

What is Money Market?

 Money Market 

The money market is a place for trading in money and short term financial assets that are close substitutes for money. It provides an opportunity for balancing the short-term surplus funds of the lenders/investors with the short term requirements of borrowers. An important feature of the money market instruments is that they are liquid with varying degree and can be traded in the money market at low cost. 

Meaning and Concept of  Money Market 

The money market is a market for short term loans, i.e. less than one year. The very name, in fact, suggest that it is money that is being bought and sold. Business firms used it for the purchase of inventory, the sales Finance Companies use it to finance as consumer credit, the banks used to finance temporary reserve shortages and the government uses it to bridge the gap between tax receipts and expenditure (in other words, for deficit financing). A noteworthy the point is that in the money market we did not in money but near money assets. 

        The money market is not a place but an activity, the transactions are carried out by telephone, mail, etc. Among people who may have never made one another. Almost all big cities have local money markets, say in Bombay there is the Bombay money market, in New York, there is the New York money market and in London there is the London Money market.

There are some money markets which are International in scope. For example, the London Money market or the New York money market. The major parties of the London Money market are discount houses, the bank of England and the commercial banks including acceptance houses, Overseas, foreign and other banks in London.


Popular posts from this blog

Why is Scandinavia so expensive ?

Hi I am Deepjit Karmakar, founder of and today here in this article I am gonna tell you why Scandinavia is so expensive. Across scandinavia, the average price of everything from a knitted  pay roll neck pastries from the local bakery are some of the highest in the world. Scandinavia is a region in Northern Europe that was a historical e made up of three kingdoms: Norway, Sweden and Denmark. They are United by their Viking heritage but also their shared reputation as one of the most expensive regions to live and visit. Whether it's buying a car or a TV. Consumers in Scandinavia pay some of the highest prices in the world. Even buying groceries is costly with all three countries' food and drink prices above the European average. All three countries also have a standard  VAT rate of 25%. Amongst all the European Nations, only Hungary has a higher rate. Heading to the bar is also pretty pricey. In Norway, having a beer or glass of wine will cost in ×2.5 times

Why is Singapore so rich and developed

 Hii! I am Deepjit Karmakar and today here in this article i am gonna tell you that why Singapore is so rich and developed. So, without wasting time let's get started. Singapore: Singapore is a tiny country, so tiny you can drive accross the island in just one hour. Despite its size and lack of natural resources, Singapore's 5.6 million people enjoy one of the highest average incomes in the world, ahead of countries like Germany, France and Japan. So, how did this little island get so rich?  Xiaomi 11 Lite NE 5G (Diamond Dazzle 6GB RAM 128 GB Storage) | Slimmest (6.81mm) & Lightest (158g) 5G Smartphone Explained:  Singapore doesn't have resources like coal or oil but it does have something which countries can't buy, location. The island sits in the middle of an important trade route connecting Asia to Europe. That's the key reason why the British decided, back in 1819, to set up a colony in Singapore. Location isn't everything though. There are several count

Japanese Management Approach

  Fossil Chronograph White Dial Men's Watch-CH2882 Amazon's Choice for "fossil watches for men" 16% off Japan has emerged as a world leader in industrial development. Today japan has great commercuial success. The japanese 'economic miracle' has attracted the attention from east and west. In this respect, many countries are turning to the japanese style of management. Although the entire japanese style of management may not be applicable to all nations due to social and cultural differences, certain characteristics features may find wide applicability. The roots of unique practices and style of Japanese management are as follows- (a) Groupism : Groups are the primary social unit throughout japan. Without getting the consensus of his group, the leader of a group can't do anything. In japan, self is seen as part of a group. (b) Confucianism : It is a descipline of life-style. It emphasizes the importance of loyalty to a boss, obedience to a senior person, th