ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers.

Detailed explanation-2: -Money market: Money market is a market for dealing with the financial assets and securities which have a maturity period of up to one year. In other words, it’s a market for purely short-term funds.

Detailed explanation-3: -Money market refers to the market for trading of short term securities and funds. Securities traded in the money market have a very short maturity period ranging from one day to one year. Such assets act as a close substitute for cash or money.

Detailed explanation-4: -For the most part, money markets provide those with funds-banks, money managers, and retail investors-a means for safe, liquid, short-term investments, and they offer borrowers-banks, broker-dealers, hedge funds, and nonfinancial corporations-access to low-cost funds.

Detailed explanation-5: -Debt Market: These Markets offer debt instruments and fixed claims like bonds and debentures, etc.