Functions of money market?
what is the correlation between Indian stock market and foreign stock market
The money market allows money available for short periods to be directed to those who can use it. The functions fulfilled by the money market are the following: Provides a mechanism such that institutions in a deficit position can borrow funds temporarily and institutions in a surplus position can invest the funds temporarily. The money market allows institutions to hold a proportion of their funds in liquid assets that will enable them realise cash quickly…
1. Raise capital for industry 2. Provide liquidity for financial instruments that trade in a secondary market ___ A capital market is a market for securities, where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market).
1.Existing of unorganisation money market. 2.Lack of intigration, there is no different kinds of sub money market. 3.Disparity in interest rates, there is two money interstate in money market. 4.Lack of proper bill market. For the developed of money market they should be a bill market. 5.Lack of very well organized banking system.