Professional Documents
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Chapter 2 Money Market
Chapter 2 Money Market
Chapter 2 Money Market
Market
Characteristics of Money
Market
Need-based market
$reasury bills
Certi-cates of deposit
Commercial bills
Commercial paper
$reasury bills
Issuers
credit0orthy corporates
primary dealers
Maturity period
+5 days to one year for banks
+ to 7 years for !Is
$ransferable by endorsement
Rep
o
Rate
Call
Rate
CB1
<
Rate
Market
Repo
Rate
:+ day
$-Bills
79,-day
$ Bills
CP
Rate
C
Rat
e
2 ! " # $ % & '
4888-8+ ++24 :2+ - - :28 :2= +82= :29
488+-84 =25 324 - - 328 327 :24 =28
4884-87 323 52: - - 52= 52: 323 929
4887-8, 328 ,29 - - ,29 ,23 92+ 527
488,-85 928 ,23 - - ,2: 524 52= 528
4885-89 924 529 527 52, 523 928 923 92+
4889-83 328 324 924 927 929 328 =25 32:
4883-8= 32= 92+ 524 525 32+ 325 :27 :2+
488=-8: 32, 32+ 92+ 925 32+ 324 +823 :24
488:-+8 ,2= 724 423 42= 729 ,2, 527 52,
48+8-++ 52: 523 52, 525 924 929 =23 323
48++-+4 =28 =2+ 32= 32: =2, =2, +82+ :29
48+7-+, )so far* =28 =2+ 32: =28 =24 =2+ :27 :28
$o pro&ide
Price stability
(ro)th
Interest rates
Repo rate: $-
Repo
1ink Bet0een Money Market and
Monetary Policy in India