MONEY MARKET. Money Market. Money market is a place for trading in money and short term financial assets that are close substitutes of money. Provides an opportunity for balancing the short term surplus funds of investors with short term requirements of borrowers.
The centre for dealings, mainly short term character, in monetary assets; it meets the short term requirements of borrowers and provide liquidity and cash to the lenders.
1. Economic development of the country:
3. Help to government: Borrows short term funds at very low interest rates.
4. Help to commercial Bank: the banks with deficit of funds can raise funds from money market at a low rate of interest.
5. Encouragement to Savings and investment: it encourages saving and investment by transferring funds from one sector to another sector.
A bill of exchange is a written unconditional order which is signed by the drawer requiring the drawee to pay on demand or at fixed future time, a definite sum of money.