Fine Marketz

Financial market is classified into Money and capital market. Classification is on the basis of Term of credit .whether credit is supplied for a loan term or short term loan.

 

1. Money Market: It is a market for short term assets it deals with financial claim ,assets and securities which have a maturity period of 1 year it includes following markets.

 a) Call Money Market: lending and borrowing in the all money market are for short duration ranging from overnight to fortnight. Overnight means when money is borrowed or lend for a day or upto14 days, is notice these transactions. Call Loans are repayable on demand at the option of the borrower or lender or at very short notice. Therefore all loans are very liquid and next only to cash                       b) Treasury bill market: They are an imp. Instrument of short term borrowing by the government. they are an imp money market instrument due to their high liquidity zero default risk ready availability low transaction cost assured yield, negligible risk of  capital depriciaton.The treasury bill from 14 days duration 364 days duration loan.                     c) Commercial bill market: It is keystone of a well developed and Active money market. The system of bill financing imparts flexibility to money market loan                   d) Collected loan market: This refer to a market for loans against callaeral securities. These loans are mostly granted by commercial banks to private parties and debentures of corporations

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