ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Market value (also known as OMV, or “open market valuation") is the price an asset would fetch in the marketplace, or the value that the investment community gives to a particular equity or business.

Detailed explanation-2: -The money market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

Detailed explanation-3: -If you’re saving for something you’ll need the money for in less than three to five years, saving in a money market fund may make sense for you. Money market funds are ideal for short-term saving because they invest in highly liquid securities with the objective of capital preservation and income.

Detailed explanation-4: -Importance of the money market It helps to strengthen the balance between the demand and supply of short-term monetary transactions in the market. It helps businesses grow, which can positively affect economic development. It assists with the evaluation of certain monetary policies.