Securities laws and compliances

Hey, Money Market is basically a market for short term instruments that is instruments with a maturity period of less than a year. It serves as a market where people who have  short term fund requirements and investors who possess money and would want to invest it for a shorter period of time...exchange funds...

For Example: "Money at call and short notice" is a money market instrument which is used by banks... If a bank is in sudden need of short term funds..say for 15 days..it can easily borrow that money from other banks through this "money at call and short notice"...however the interest rate charged will be a bit high...Similarly banks which have surplus of funds can lend it to other instituitions in need instead of keeping it idle and earn interest on them.

Thus money market balances short term surpluses and deficiencies.

Hi

Divya Bharathi view is right

Same As Divya BHarti

Hi,

I agree with Divya Bharthi.