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प्रश्न
Explain the following term/concept.
Money market
उत्तर
The money market is a market wherein lending and borrowing of funds take place for a short period of time, which varies from one day to a year. The financial instruments traded in this market can be converted into cash easily without any loss of time and value. The money market helps in fulfilling the short-term and very short-term requirements of the companies, banks, financial institutions, government agencies, etc.
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संबंधित प्रश्न
Central government is a borrower in the money market through the issue of ______.
Write a word or a term or a phrase which can substitute the following statement.
A market which provides short term funds
Write a word or a term or a phrase which can substitute the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.
State whether the following statement is true or false
Capital market is the market for the long term funds.
State whether the following statement is true or false
Secondary market is commonly known as stock market.
State whether the following statement is true or false
Commercial paper is a secured promissory note.
Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
| c) __________ | 3) Capital market |
| d) __________ | 4) Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Answer in one sentence.
What is Certificate of Deposits?
Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.
Explain the following term/concept.
Commercial bills
Answer in brief.
State any four features of money market
Justify the following statement.
Financial markets acts as link between investor and borrower.
Justify the following statement.
There are many participants in money market.
Answer the following question
State the instruments in money market.
Study the following case/situation and express your opinion.
| Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares. |
- Should it go to the primary market or secondary market to issue its shares?
- Should it offer its shares through public offers or rights issues?
- What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
