Fundamental of Finance Assignment, Money Market
TABLEOF CONTENT
Plagiarism Statement Declaration Form
Marking scheme 1. Introduction 2. Body- i. Call deposit ii. Term deposit iii. Bills of exchange iv. Floating rate note v. Treasury bills vi. Certificate of Deposit (CD) vii. Commercial paper
3. Recommendation/opinion
4. Conclusion
5. Referencing
3.
MARKING SCHEME (ASSESSMENT CRITERIA): Criteria | Maximum Marks | Marks Allocated | Remarks | 1. Introduction | 10 | | | 2. Body - facts | 24 | | | 3. Recommendations/opinion if any | 14 | | | 4. Conclusion | 8 | | | 5. Referencing | 4 | | |
Introduction
Definition
Money market is the Centre of dealings, mainly short term character, in money assets. It meets the short term requirements of borrowers and provides liquidity or cash to the lenders. It is the place where short term surplus investible funds at the disposal of financial and other institutions and individual are bid by borrowers, again comprising Institutions, individuals and also the government itself. Money market refers to the market for short term assets that are close substitutes of money, usually with maturities of less than a year. A well-functioning money market provides a relatively safe and steady income-yielding avenue. It also allows the investor institution to optimize the yield on temporary surplus fund.
What is it?
The money market is a subsection of the fixed income market. We generally think of the term fixed income as being synonymous to bonds. In reality, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year). Money markets investments are also called cash investments because of their short maturities.
Money market securities are essentially IOUs issued by governments, financial institutions and large corporations. These instruments
Plagiarism Statement Declaration Form
Marking scheme 1. Introduction 2. Body- i. Call deposit ii. Term deposit iii. Bills of exchange iv. Floating rate note v. Treasury bills vi. Certificate of Deposit (CD) vii. Commercial paper
3. Recommendation/opinion
4. Conclusion
5. Referencing
3.
MARKING SCHEME (ASSESSMENT CRITERIA): Criteria | Maximum Marks | Marks Allocated | Remarks | 1. Introduction | 10 | | | 2. Body - facts | 24 | | | 3. Recommendations/opinion if any | 14 | | | 4. Conclusion | 8 | | | 5. Referencing | 4 | | |
Introduction
Definition
Money market is the Centre of dealings, mainly short term character, in money assets. It meets the short term requirements of borrowers and provides liquidity or cash to the lenders. It is the place where short term surplus investible funds at the disposal of financial and other institutions and individual are bid by borrowers, again comprising Institutions, individuals and also the government itself. Money market refers to the market for short term assets that are close substitutes of money, usually with maturities of less than a year. A well-functioning money market provides a relatively safe and steady income-yielding avenue. It also allows the investor institution to optimize the yield on temporary surplus fund.
What is it?
The money market is a subsection of the fixed income market. We generally think of the term fixed income as being synonymous to bonds. In reality, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year). Money markets investments are also called cash investments because of their short maturities.
Money market securities are essentially IOUs issued by governments, financial institutions and large corporations. These instruments