ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Commercial banks are at the centre of most money markets, as both suppliers and users of funds, and in many markets a few large commercial banks serve also as middlemen. These banks have a unique place because it is their role to furnish an important part of the money supply.

Detailed explanation-2: -The major players and institutions of this market are the Reserve Bank of India, all the commercial banks of the country, NBFC’s, LIC, Mutual Funds, large corporates, and even the respective state governments.

Detailed explanation-3: -Participants of Call Money Market in India Banks, Primary Dealers (PDs), Development Finance Institutions, Insurance companies, and select Mutual Funds are currently participants in the call money market. PDs and banks can act as both borrowers and lenders in the market.

Detailed explanation-4: -The major participants in the money market are commercial banks, governments, corporations, government-sponsored enterprises, money market mutual funds, futures market exchanges, brokers and dealers, and the Federal Reserve. Commercial Banks Banks play three important roles in the money market.

Detailed explanation-5: -Mutual Funds is not a part of Money Market.