Money Markets in India


March 24, 2015

Anything that can be generally acceptable as payment for goods and services or settlement of debts is Money. It is the element of confidence that others will accept it as a payment is what gives the purchasing power to money. The major functions of money are: It a medium...

Near Money

March 24, 2015

Near money is a concept closely related to liquidity. Liquidity refers to how fast the money can perform the economic actions like buying, selling, or paying debt, meeting immediate wants and needs. There should not be loss of time and value in perming the economic functions. Thus, liquidity of...

Money Supply and Monetary Aggregates

March 24, 2015

What do you understand by Money Supply? Differentiate between the broad money, narrow money and reserve money. Which is more liquid? Why?

Money Markets

March 24, 2015

Money markets are those markets where borrowing and lending of short term funds ( maturity 1 day to 1 year) takes place. Due to short maturity, the instruments of money market are liquid and can be converted to cash easily and thus are able to address the need of...

Money Market Reforms in India

March 24, 2015

Reserve Bank of India is the biggest regulator of the Indian markets. It controls the monetary policy of India. Its control is however limited to the organised part of economy and the unorganised sector which has a significant presence is largely unregulated. RBI frequently introduces many reforms to bolster...

Problems of Indian Money Markets

March 23, 2015

Indian money market is relatively underdeveloped when compared with advanced markets like New York and London Money Markets. Critically analyse various problems of the Indian Money Markets.

Structure & Functions of Money Market in India

March 23, 2015

What do you mean by Money Markets? How they are different from Capital Markets. Discuss the structure and functions of organized money markets in India.

Explained: What is Call Money?

March 18, 2015

Banks have to maintain a minimum level of cash to meet the daily transaction level and also maintain the Cash Reserve Ratio i.e. the minimum cash balance that has to be maintained by banks. It is decided by Reserve Bank of India time to time. When the cash in...

Key facts about Treasury Bills in India

March 17, 2015

The bill market is a sub-market of the money market in India. There are two types of bills viz. Treasury Bills and commercial bills. While Treasury Bills or T-Bills are issued by the Central Government; Commercial Bills are issued by financial institutions. Types of Treasury Bills Treasury Bills are...

Call Money / Notice Money Market

March 17, 2015

Call Money, Notice Money and Term Money markets are sub-markets of the Indian Money Market. These refer to the markets for very short term funds. Call Money refers to the borrowing or lending of funds for 1 day. Notice Money refers to the borrowing and lending of funds for...