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

• A market where short-term funds are borrowed and lent is called ‘money market7. It is a market for financial assets that are close substitutes for money.
• The instruments dealt within the market are liquid and can be converted quickly into cash at a low transaction cost.

Definition:
According to the Reserve Bank of India, “The money market is the center for dealings mainly of short-term characters in money assets; it needs the short-term requirements of borrowers and provides liquidity or cash to the lenders. It is a place where short-term surplus investible funds at the disposal of financial, institutions or individuals are bid by borrower’s agents comprising institutions and individuals and also by the government itse