Marginal Standing Facility (MSF) is a monetary policy tool that was introduced by the Reserve Bank of India (RBI) in 2011. It is an overnight lending facility that allows banks to borrow money from the RBI at a rate that is higher than the repo rate. The repo rate is the rate at which banks …
Classifications of Capital Market The capital market can be classified into two main categories: the primary market and the secondary market. Primary Market: The primary market is the market where new securities are issued and sold to investors for the first time. This typically occurs when a company issues new stock or bonds in order …
Capital Market The capital market is a financial market where long-term investments are traded, such as stocks, bonds, and other securities. The capital market is primarily used to raise capital for companies, governments, and other organizations that need to fund long-term investments or projects. The capital market is different from the money market, which is …
Gross National Product (GNP) is a measure of the economic output of a country, and it represents the total value of goods and services produced by the residents of a country, both domestically and abroad, during a specific time period. GNP is an important measure of a country’s economic performance, and it is often used …
Unorganized Money Market The unorganized money market refers to a market where short-term funds are borrowed and lent without any formal regulatory framework or institutional structure. In contrast to the organized money market, which is highly regulated and operates through formal institutions, the unorganized money market consists of informal arrangements between borrowers and lenders, often …
Organized Money Market Instrument The organised money market refers to a system of financial institutions, trading platforms, and regulations that facilitate the buying and selling of short-term financial instruments. These instruments include commercial paper, certificates of deposit, treasury bills, and repurchase agreements, among others. The money market is highly organized to ensure liquidity, efficiency, and …
A depression refers to a prolonged and severe economic downturn that lasts for several years and is characterized by a significant decline in economic activity, high unemployment, and low levels of investment and consumer spending. Depressions are often caused by a combination of factors such as a financial crisis, a sharp contraction in credit availability, …
Organized Money Market The money market is a crucial part of the financial system that deals with short-term financial instruments such as commercial paper, certificates of deposit, and treasury bills. These instruments are traded in the money market to manage liquidity, invest excess cash, and raise funds for short-term needs. The money market is highly …
Structure of Money market in India The money market in India consists of several components that work together to facilitate short-term borrowing and lending of funds. The following is an overview of the structure of the money market in India: Call Money Market: The call money market is a segment of the money market in …
Money Market Money market refers to a financial market where short-term borrowing and lending of funds takes place. The market deals in financial instruments that have a maturity period of one year or less. Money market instruments are considered low-risk investments and are popular among investors who seek to preserve capital and earn a moderate …
