Unit-4 Money Market
Introduction & Meaning & Significance
The money market is a crucial segment of the financial market where short-term borrowing and lend...
Structure
The Indian money market is a complex financial system composed of both organized and unorganized ...
Features of money market
High Liquidity: Money market instruments have a maturity period of one year or less, making the...
Importance of money market
Development of Trade and Industry: The money market provides essential financing for trade and ...
Players in Money market
Central Bank (RBI in the case of India): The central bank plays a pivotal role in the money mar...
Money market instruments
Treasury Bills (T-bills): Short-term government securities with a maturity of less than a year....
Reforms in Indian money market
Deregulation of Interest Rates: Starting from May 1989, the RBI removed the ceiling on interes...
Monetary policy
Definition of Monetary Policy Monetary policy is a macroeconomic policy managed by the central b...
Credit Policy
A credit policy is a set of rules and standards that govern how companies grant credit to custom...
Role of RBI in money market
The Reserve Bank of India (RBI) plays a multifaceted role in the Indian money market, and its fun...