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Question
Justify the following statement.
There are many participants in money market.
Solution
- In the money market, lending and borrowing of funds take place for a short period of time, which may vary from one day to a year.
- Participants of the money market include RBI, Central and State governments Public Sector Undertakings, Scheduled commercial banks, Insurance companies, Mutual funds, Non-Banking Finance Companies, Corporates, Primary dealers, etc.
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RELATED QUESTIONS
Central government is a borrower in the money market through the issue of ______.
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