Money Market refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year.

The most active part of the money market is the market for overnight call and term money between banks and institutions
and repo transactions. It is regulated by RBI.

Money Market can be further divided into 3 parts. These are:
a) Call Money
b) Term Money
c) Notice Money

Call Money – The market to get funds for 1 day only is called as Call Money .

Notice Money  – The market to get funds for 2 days to 14 days is called as Notice Money.

Term Money – The market to get funds for 15 days to 1 year is called as Term Money t.

Some of the Money Market instruments are:
1) Commercial Paper
2) Certificate of Deposit
3) T-bills
4) Cash Management Bills

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