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Financial Market — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeFinancial Market4 Marks
Question
Money Market makes available short-term finance through different instruments.
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Answer

  • The money market is the market that provides short-term loans to businesses and governments.
  • The loan period ranging from one day to one year.
  • Call money and notice money provide finance for periods between 2 days to 14 days.
  • Treasury Bills offer finance to the government for 91 days, 182 days, 364 days. Trade Bill or commercial bills offer finance up to 90 days.
  • Commercial paper offers finance to the business organization from 7 days to 1 year. Money Market Mutual Fund offers finance for a maximum period of 1 year.
  • Hence, the money market makes available short-term finance through different instruments.

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