Commerce - Meaning and Definition of Money Market | 12th Commerce : Chapter 6 : Financial Markets : Money Market
Chapter: 12th Commerce : Chapter 6 : Financial Markets : Money Market
Meaning and Definition of Money Market
MONEY MARKET
Money Market
Money Market is a market for purely short-term
funds. It deals with the financial assets and securities whose maturity period
does not exceed one year.
Meaning and Definition
Money Market is the segment of financial markets
where in financial instruments having maturities of less than one year are
traded. Examples: Treasury Bills, Commercial Bills, Certificate of Deposits,
Government Securities, etc.,
According to Crowther, ”the money market is the
collective name given to the various firms and institutions that deal in the
various grades of near money”.
The RBI defines the money market as, “a market for
short-term financial assets that are close substitutes for money facilitates
the exchange of money for new financial claims in the primary market as also
for financial claims, already issued, in the secondary market”
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