Page 2 - Digi Notes : GA- 25.04.2016
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The money market is a market for short-term financial assets that are close substitutes of money.
The most important feature of a money market instrument is that it is liquid and can be turned into
money quickly at low cost and provides an avenue for equilibrating the short-term surplus funds of
lenders and the requirements of borrowers.
The call/notice money market forms an important segment of the Indian Money Market.
"Call Money" means deals in overnight funds.
"Notice Money" means deals in funds for 2 - 14 days.
“Term Money” means deals in funds for 15 days-1 year.
Participants:
Participants in call/notice money market currently include scheduled commercial banks (excluding
RRBs), co-operative banks (other than Land Development Banks) and Primary Dealers (PDs), both
as borrowers and lenders.
www.mahendraguru.com
The money market is a market for short-term financial assets that are close substitutes of money.
The most important feature of a money market instrument is that it is liquid and can be turned into
money quickly at low cost and provides an avenue for equilibrating the short-term surplus funds of
lenders and the requirements of borrowers.
The call/notice money market forms an important segment of the Indian Money Market.
"Call Money" means deals in overnight funds.
"Notice Money" means deals in funds for 2 - 14 days.
“Term Money” means deals in funds for 15 days-1 year.
Participants:
Participants in call/notice money market currently include scheduled commercial banks (excluding
RRBs), co-operative banks (other than Land Development Banks) and Primary Dealers (PDs), both
as borrowers and lenders.
www.mahendraguru.com
