Mastergp
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Many people do not know what a money market is all about but let have a brief look at what it is.
Well money market can be seen as a market for short term loan. The market consist of institutions or individuals who either have money to lend or wish to borrow on a short term basis.
Instrument used in the money market include the following:
Treasury bills:
Treasury bills is normally issued by the central bank of a country, which assist the government to borrow money from the money market on short term basis.
Bill of exchange:
Bill of exchange refers to a promissory note which shows the acknowledgement of indebtedness by a debtors to his creditor and his intention to pay the debt on demand or at an agreed time in future normally 90 days.
Call money funds:
The call money fund or market is a special arrangement in which the participating institutions invest surplus money for their immediate requirements on an overnight basis with the interest and withdrawal on demands.
Well money market can be seen as a market for short term loan. The market consist of institutions or individuals who either have money to lend or wish to borrow on a short term basis.
Instrument used in the money market include the following:
Treasury bills:
Treasury bills is normally issued by the central bank of a country, which assist the government to borrow money from the money market on short term basis.
Bill of exchange:
Bill of exchange refers to a promissory note which shows the acknowledgement of indebtedness by a debtors to his creditor and his intention to pay the debt on demand or at an agreed time in future normally 90 days.
Call money funds:
The call money fund or market is a special arrangement in which the participating institutions invest surplus money for their immediate requirements on an overnight basis with the interest and withdrawal on demands.
