Participants of Market-min
Want create site? Find Free WordPress Themes and plugins.

Financial system of any country consists on different sub-markets as money, capital and forex markets. The flow of funds in these markets is multi-directional depending upon liquidity, risk profile, yield pattern, interest rate differential or arbitrage opportunities, regulatory restrictions, etc. The role of money market in the overall financial system is prime in as much as the market acts as an equilibrating mechanism for evening out short term surpluses and deficits and provides a focal point for Central Bank’s intervention to bring out variations in liquidity profile in the economy. It is short-term market meant to meet short term financial needs ranging from fortnight to 1 year.

Distinction between Capital and Money Market

Capital Markets are meant to finance capital requirements by way of shares and bonds, whereas Money Markets are meant to finance short term working fund requirements. Money Markets are meant to enter financial arrangements of less than 1 year whereas in capital markets, arrangements are made longer than a year. In terms of volume, money markets are lot larger than capital markets. Unlike the Capital Markets that deal in Shares and Bonds, there are many types of instruments to deal in Money markets such as Interbank Call Money, Notice Money upto 14 days, Short-term deposits upto 3 Months, 91 days Treasury Bill, 182 days Treasury Bill, Commercial Paper, etc.

Did you find apk for android? You can find new Free Android Games and apps.
Tags : Money Markets
Raj Kumar

The author Raj Kumar

I love blogging and studying taxation. I write articles related to Tax laws and common issues in handling taxation in India. Often, common but small mistakes make things complicated. I write and share them to save precious time of others.

Leave a Response

Please wait...
Send a message

Sorry, we aren't online at the moment. Leave a message.

Your name
* Email
* Phone
Begin Online Chat Now

Need help? Save time by starting your support request online. Simply, enter your Name, Email & Phone no. to begin online Chat Help Service.

* Your name
* Email
* Phone
We're online!

Help us help you better! Feel free to leave us any additional feedback.

How do you rate our support?