ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment Houses
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Mortgage Banks
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Reserve Bank of India
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Commercial Banks and Discount Houses
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Detailed explanation-1: -Money market consists of various financial institutions and dealers, who seek to borrow or loan securities. It is the best source to invest in liquid assets. The money market is an unregulated and informal market and not structured like the capital markets, where things are organised in a formal way.
Detailed explanation-2: -What Is a Discount House? In the financial world, a discount house is a firm that specializes in trading, discounting, and negotiating bills of exchange or promissory notes. Its transactions are generally performed on a large scale with transactions that also include government bonds and Treasury bills.
Detailed explanation-3: -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-4: -Treasury Bills are one of the most popular money market instruments. Certificate of Deposit (CD’s) is a negotiable term deposit accepted by commercial banks. Money Market Mutual Funds, MMMFs are highly liquid open-ended dent funds generally used for short term cash needs. 20-Feb-2023