ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Household and firms
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Firm and government
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Banking and non banking instituions
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None of the above
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Detailed explanation-1: -There is no formal place for the trading ( like a stock exchange). Brokers free transactions are there. The components of a money market are the Central Bank, Commercial Banks, Non-banking financial companies, discount houses, and acceptance house. Commercial banks are dominant player of this market.
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: -There are two main types of financial institutions: banking and non-banking. Banking institutions include commercial banks, savings and loan associations, and credit unions. Non-banking financial institutions include insurance companies, pension funds, and hedge funds.
Detailed explanation-4: -The details of these segments are presented in Annex-Table A. 1 In India, commercial banks, co-operative banks, primary dealers (PDs), insurance companies, mutual funds (MFs), non-banking financial companies (NBFCs), corporates are permitted to participate in money markets.
Detailed explanation-5: -Central Bank: The central bank of the country is the pivot around which the entire money market revolves. Commercial Banks: Non-bank Financial Intermediaries: Discount Houses and Bill Brokers: Acceptance Houses: Promissory Note: Bill of Exchange or Commercial Bills: Treasury Bill: More items