***FOR CLERKS INTERVIEW**** ##....MONEY MARKET IN INDIA.....## It is a market in which short term funds are borrowed and lent by.. -government -banks -financial institutions and -PSU The money market instruments are: a)call money b)treasury bills c)certificate of deposits d)commercial papers e)commercial bills a)call money: -Money borrowed or lent for very short period of time -if period is greater than one day and less than 14days it is called as notice money -greater than one day is called call money b)treasury bills: -form of short term government security and safest form of investment(risk free) -these are sold at discount such that the difference b/w purchase price and value t the maturity is the amount of interest c)certificate of deposits: -it is a negotiable promissory note -minimum amount is 1lakh -maturity period minimum=7days and maximum=12months -sold at discount like treasury bills and very secure d)commercial papers: -type of negotiable promissory note -it is unsecured and possibility of theft maturity period is less than 270 days e)commercial bills: -a bill of exchange issued by a commercial organization to raise money for short-term needs. -these bills are called trade bills. -the tarde bills are called commercial bills when they are accepted by commercial banks
Posted on: Fri, 31 Jan 2014 07:36:37 +0000
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