Money Market – geeksforjobs


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Money is split in the market

  1. Organized sector (controlled by government)
  2. Unorganized sector (not controlled by government)

Organized sector is divided into

  1. Banking system
    1. Central bank
    2. commercial Bank
    3. Co-operative Bank
    4. Development bank
  2. Sub market
    1. Bill market
      1. T-Bill
      2. commercial paper
      3. certificate of deposit
    2. Instrument market
      1. Call money
      2. Notice money
      3. Term money

The unorganized sector is divided into:

  1. NBFC (Non-Banking Financial Corporation)
  2. Money lender

IRDAI – Subhash Chandra Khuntia

Instrument Market:

  1. Call Money: Late Night to One Day
  2. Notice money: 2 to 14 days
  3. Term money: more than 14 days

When commercial banks are needed, they borrow some money from RBI or any other commercial bank.

Bill market:

  1. Treasury Bill: It is a short-term instrument issued by GOI issued by the Reserve Bank of India. The short term duration is 91 days, 182 days, 364 days.
  2. Commercial paper: It is used by businessmen to finance their working capital. The minimum time period here is 7 days and maximum time is 364 days.

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