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money market

   

Added on  2023-03-23

7 Pages416 Words92 Views
Money
Market

Economic Function of Money Market
• To maintain monetary balance
• To maintain balance between demand and supply of money for short term
transactions
• To promote economic growth
• To channelize funds to various sectors in economy
• To maintain and provide mechanism for implementation of monetary
policy in an effectual manner

Cont....
• It helps in capital formation by generating savings and investment in
nation.
• Money market provides funds to banks and financial institutions so that
short term need of money can be fulfilled by them.
• Treasury bills may be issued by the government to raise short term loans.

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