Money market, Microeconomics

Assignment Help:

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.


Related Discussions:- Money market

Consumer and producer surplus, Suppose that demand is downward sloping and ...

Suppose that demand is downward sloping and supply upward sloping. Subsidies cause dead weight loss despite the fact that: 1)consumer surplus increases. 2)total surplus increases

Short run equilibrium - perfect competition, Short run equilibrium - Perfec...

Short run equilibrium - Perfect competition: In the short-run, the perfectly competitive firm maximizes its profit by producing output where MC=MR=P. This is shown in the diag

What is the macroeconomics, What is the Macroeconomics? Macroeconomics...

What is the Macroeconomics? Macroeconomics is study about the aggregate behavior of the economy like how the actions of all the individuals and firms within the economy intera

Monopsony, disadvantages of monopsony

disadvantages of monopsony

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Consumer behaviour, compare and contrast between cordinal and ordinal appr...

compare and contrast between cordinal and ordinal approaches

The standard indifference curve diagram, The Standard Indifference Curve Di...

The Standard Indifference Curve Diagram. The standard model of labour leisure choice does not distinguish between females and males. It is a unisex model. The vertical axis gives

Decay toothbruch, What is the arc cross elasticity of demand between Stop d...

What is the arc cross elasticity of demand between Stop decay''s toothbrush and Decay fighter''s toothbrush? What does this indicate about the relationship between the two products

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd