Money market, Microeconomics

Money market:

The money market is a market of short-term loans. It consists of financial institutions having surplus fund to lend on short-term basis, and those wishing to borrow. The market allocated savings into investments thereby promoting rational allocation of resources. It also encourages savings and investment habits by promoting liquidity and safety of financial assets. Institutions that operates in the market include the Central Bank, commercial banks, and discount houses.The major short-term instruments associated with the Nigerian money market includes treasury securities, commercial papers, call money, Bankers’ Unit Fund, Banker’ Acceptance, etc.

The capital market on the other hand, is a market for mobilizing long-term funds. It is a market for new issues of securities as well as for trading in existing securities. The major instruments for raising funds in the market include equities, debentures, bonds, and stocks. The main institutions in the capital market are the stock exchange, the issuing houses, and the stock broking firms.

Posted Date: 1/3/2013 1:42:44 AM | Location : United States







Related Discussions:- Money market, Assignment Help, Ask Question on Money market, Get Answer, Expert's Help, Money market Discussions

Write discussion on Money market
Your posts are moderated
Related Questions

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month: UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000

Show that a pulsed spherical wave has a complex wavefunction of the form U(r,t) = (1/r)a(t-r/c) where a(t) is an arbitrary function. An ultrashort optical pulse has a complex wavef

You should find two articles, of which one should report on changes that make farming more productive (more food per acre, hour or other unit of inputs), and another about changes

If the inverse demand curve is p=120-Q and the marginal cost is constant at 10, how does charging the monopoly a specific tax of r=10 per unit affect the monopoly optimum and the w

The government decides to implement a new economic stimulus package targeted at American Farmers. The stimulus package gives every household a $300 prepaid credit card that may on


Price Elasticity A measure of the change in demand for a product relative to unit changes in the price of the product. If the percentage change in quantity demanded is greater

Problem 1: a. Use the circular flow model to explain the concepts of injections and withdrawals. b. Explain the concept of budget multiplier. c. Using the concept of mult

how to compute the price of a laptop increase of 20% and there is a 40% drop in the aquantity demanded