Money Market:
A
money market is a market for borrowing and lending of short-term funds. It
deals in funds and financial instruments having a maturity period of one day to
one year. It is a mechanism through which short-term funds are loaned or
borrowed and through which a large part of financial transactions of a
particular country are cleared.
Thus
RBI describes money market as “the centre for dealings, mainly of a short-term
character, in monetary assets, it meets the short-term requirements of
borrowers and provides liquidity or cash to lenders”.
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