Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MARKET3 Marks
Question
What is unorganized money market?
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Answer
Unorganized money market:
The unorganized money market is an informal form of money market.
Since it is an informal market, there is neither any regulation to run it nor there is any centralized institution on it. Thus, activities in this market are carried out without any rules and regulations.
Money market consists of money lenders, landlords, pawn, indigenous bankers, shroffs, etc. But, there is no co-ordination between these entities and all of them operate according to their free will. They charge interest rate as per their will.
Although unorganized money market is more developed in rural areas of India, it is also found in most urban areas.
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