Hi everyone this is sasi..
Money market in India :
Money market is the cluster of financial institutions that deals in short -term securities and loans, gold and foreign exchange. It has a time value and therefore, it is bought and sold against a payment of interest.
The functions of money market are as follow.
* It provides an equilibrating mechanism for demand and supply of short - term funds.
* It enables borrowers and lenders of short - term funds to fulfil their borrowing and investment requirements at an efficient market clearing price.
* Monetary market is regulated by RBI in India and it forms monetary policy to control the movemerof rupees in the market.
* monetary policy will be set by Monetary policy committee earlier it was duty of RBI Governor. Monetary policy is released every 2 months by RBI.
* Monetary policy involves changing interest rates either directly or indirectly through open market Operations, setting reserve requirements or trading in foreign exchange.
Money market in India :
Money market is the cluster of financial institutions that deals in short -term securities and loans, gold and foreign exchange. It has a time value and therefore, it is bought and sold against a payment of interest.
The functions of money market are as follow.
* It provides an equilibrating mechanism for demand and supply of short - term funds.
* It enables borrowers and lenders of short - term funds to fulfil their borrowing and investment requirements at an efficient market clearing price.
* Monetary market is regulated by RBI in India and it forms monetary policy to control the movemerof rupees in the market.
* monetary policy will be set by Monetary policy committee earlier it was duty of RBI Governor. Monetary policy is released every 2 months by RBI.
* Monetary policy involves changing interest rates either directly or indirectly through open market Operations, setting reserve requirements or trading in foreign exchange.
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