Question

Discuss the various participants in the money markets.

Answer 1

• Money market is a financial market involved in borrowing, lending and selling with in a year.

The participants of money market are;

1.Treasury department

2. Central bank

3. Commercial bank

4. Business

Treasury department:-

• Treasury bills are the common market money security.
• They are issued with a particular time maturities.
• They are renowned among money market instruments because of cost effectivity to the investors.

Central banks:-

• It is a financial institution that maintains a state's currency,money supply and Interest rates.
• Its main function is to control the nation's money supply.

Commercial banks:-

• They tackle lending and borrowing of funds.
• The common operation of the bank is day to day premise and to develop debt paying ability .

Business:-

A corporation distribute the bank's lending department depending on the size of the company and the deals.