* Definition: The market where transactions of money and financial assets are accomplished for short time is called money market. On the other end, capital market is meant that market where transactions of money and financial assets are occurred for a long period. * Institutions: Important institutions operating in the’ money market are central banks, commercial banks, acceptance houses, non bank financial institutions, bill brokers. Important institutions of the capital market are stock exchanges, commercial banks and non bank institutions, such as insurance companies, mortgage banks, building societies. * Transactions Period: In money market transactions are accomplished for one or less than one year. While capital market transactions are for long time. * Nature of Credit Instruments: The credit instruments dealt with in the capital market are more heterogeneous than those in money market. Some homogeneity of credit instruments is needed for the operation of financial markets. Too much diversity creates problems for the investors. * Risks: Since investment of this market is for a short-term, the risk of money is low. In capital market the risk of money and loan defaulters are high. * Instruments: Cash dollar, treasury bills, commercial papers are used as the instrument in money market. On the other end, Shares, debentures, long-term bonds are the instruments of capital market. * Transaction Procedures: Since fewer formalities are required in money market therefore, transactions cost is also minimum. While, many formalities are required in making capital market transaction successful and therefore its transaction cost is little bit higher than the money market. * Relation with Government Agency: The money market is closely and directly linked with central bank of the country. The capital market feels Securities and Exchange Commission (SEC) as well as central bank’s influence, but mainly indirectly and through the money market.
Money and Capital Markets
Instructor: Donald Davis
Lucas Hall – 316Z
Course Web Page: On the Camino System
Office Hours: Tuesdays & Thursdays, 11:00-12:00 am, or by appointment after 3:45
Class Meetings: Tuesdays and Thursdays 2:00–3:40pm in Lucas 307
Money and Capital Markets is an overview of the broad structure of the money markets
(short term) and capital markets (long term financing), covering both corporate and….
Mortgage markets exist to help individuals, businesses, and other economic units to finance the purchase of a home or other property.
Characteristics of mortgage markets:
1. Mortgage loans are always secured by the pledge of real property—land or buildings— as collateral.
2. Second, mortgage loans are made for varying amounts and maturities depending on the borrower’s needs.
3. Issuers (borrowers) of mortgage loans are typically small, relatively unknown financial entities.
4. Secondary capital markets….
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage- and asset-backed securities. It provides liquidity funding for the global financial system. Money markets and capital markets are parts of financial….
Money Market an integral part of the financial market of a country. It provides a medium for the redistribution of short-term loanable funds among `financial institutions, which perform this function by selling deposits of various types, certificate of deposits and discounting of bills, treasubillry s etc. The participants in the money market are: the central bank, commercial banks, the government, finance companies, contractual saving institutions like the pension funds, insurance companies, savings….
International Journal of Social, Education, Economics and Management Engineering Vol:7, No:12, 2013
The Link between Money Market and Economic
Growth in Nigeria: Vector Error Correction Model
Ehigiamusoe, Uyi Kizito
International Science Index Vol:7, No:12, 2013 waset.org/Publication/9996702
Abstract—The paper examines the impact of money market on
economic growth in Nigeria using data for the period 1980-2012.
Econometrics techniques such as Ordinary Least Squares Method,….
The Indian money market is "a market for short-term and Long term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money." It is diversified and has evolved through many stages, from the conventional platform of treasury bills and call money to commercial paper, certificates of deposit, repos, FRAs and IRS more recently.
The Indian money market consists of diverse sub-markets, each dealing in a particular type….
Good afternoon everyone, my name is Đinh Lê Ngọc Anh and today, I’m going to talk about money markets and common money market instruments.
The money markets consist of a network of corporations, financial institutions, investors and governments, which need to borrow or invest short- term capital (up to 12 months). For example, a business or government that needs cash for a few weeks only can use the money market. So can a bank that wants to invest money that depositors….
To Money Market
Content: * Introduction * Meaning * Definitions |
The money market is a key component of the financial system as it is the fulcrum of monetary operations conducted by the central bank in its pursuit of monetary policy objectives. It is a market for short-term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money. The money market performs three broad functions….
Indian Capital Markets
Since 2003, Indian capital markets have been receiving global attention, especially from sound investors, due to the improving macroeconomic fundamentals. The presence of a great pool of skilled labour and the rapid integration with the world economy increased India’s global competitiveness. No wonder, the global ratings agencies Moody’s and Fitch have awarded India with investment grade ratings, indicating comparatively lower sovereign risks.
The Securities and Exchange….
What is Money Market? What are the important functions performed by it?
Ans. A.MEANING OF MONEY MARKET:-
A money market is a market for borrowing and lending of short-term funds. It deals in funds and financial instruments having a maturity period of one day to one year. It is a mechanism through which short-term funds are loaned or borrowed and through which a large part of financial transactions of a particular country or of the world are cleared.
It is different from stock market. It is not….