FINANCIAL MARKETS

Financial markets are markets in which funds transferred from people who have surplus funds to people have a shortage of funds. Financial markets thus allow movement of surplus funds from savers to investors. By easing the method of transfer of funds, the financial markets participate to greater production and effectiveness Read more…

money market definition

MONEY MARKET

Money market is one of the financial markets preferred by the investors for short term loans. It basically meets the short term requirement of borrowers for money and provides liquidity of cash to the lenders. Technically, money market refers to the collection of institutions engaged in the employment of short Read more…

MONEY MARKET INSTRUMENTS

CALL LOANS These loans are also called ‘Loans at call and Short Notice’. The call loans are generally granted for an overnight use or maximum for seven days. Commercial bank generally grant call loans to bill brokers, discount house and stock exchange dealers. The commercial banks also lend their surplus Read more…

capital market meaning

CAPITAL MARKET

Capital market deals with the grant of medium and long term loans. The capital market thus refers to the institutional arrangements which facilitate the lending and borrowing of medium and long term loans. The medium and long term loans are needed by business for expansion, modernization and purchase of capital Read more…