ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Companies turn to monetary market mostly to meet their working capital requirements. 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-2: -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-3: -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-4: -Reserve Bank of India It is also considered to be the biggest regulator in the markets. There are certain rates and data which are released at regular intervals which have a huge impact on all the financial markets in INDIA.

Detailed explanation-5: -It is a financial market and has no fixed geographical location. It is a market for short term financial needs, for example, working capital needs. It’s primary players are the Reserve Bank of India (RBI), commercial banks and financial institutions like LIC, etc., More items •20-Feb-2023