4

The Money Market

Chapter Objectives

This chapter will enable you to develop an understanding of the following:

  1. Meaning of Money Market.

  2. Characteristics, functions, and benefits of the money market

  3. Development of the money market in India

  4. Different money market instruments such as :

    • Treasury bills : Types, importance, participants, and size

    • Commercial papers : Meaning, participants, guidelines, and size

    • Commercial bills : Types, features, and size

    • Certificates of deposit: Features, size, and comparison of CDs and CPs

    • Call/Notice Money Market: Importance, participants, call rate, size, and steps to convert call money market into pure inter-bank money market

    • Collateralised lending and borrowing obligation

  5. Money market intermediaries ...

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