MONEY MARKET seminar topic

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2 ! Features of Money Market?

-It is a market purely for short-terms funds or financial assets called near money.

-It deals with financial assets having a maturity period less than one year only.

-In Money Market transaction can not take place formal like stock exchange, only through oral communication, relevant document and written communication transaction can be done.


Continued……..

-Transaction have to be conducted without the help of brokers.

-It is not a single homogeneous market, it comprises of several submarket like call money market, acceptance & bill market.

-The component of Money Market are the commercial banks, acceptance houses & NBFC (Non-banking financial companies).

5 ! Composition of Money Market?


Money Market consists of a number of sub-markets which collectively constitute the money market. They are,

-Call Money Market

-Commercial bills market or discount market

-Acceptance market

-Treasury bill market


Summary

-The money market specializes in debt securities that mature in less than one year.

-Money market securities are very liquid, and are considered very safe. As a result, they offer a lower return than other securities.

-The easiest way for individuals to gain access to the money market is through a money market mutual fund.

-T-bills are short-term government securities that mature in one year or less from their issue date.

-T-bills are considered to be one of the safest investments.