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

Explain the factors influencing the pes, Using commodities as an example, e...

Using commodities as an example, explain the factors influencing the PES for such goods. The basic determinants of PES are time span included and the availability of producer s

Diminishing marginal returns, law of diminishing marginal returns does no...

law of diminishing marginal returns does not hold then output of the world can be produced in a flower pot. Explain?

Macro economics, At what point is the Fed likely to raise interest rates fo...

At what point is the Fed likely to raise interest rates for the first time? How large are the first couple of hikes likely to be? (hints: conditional on unemployment or gdp growth

INDIFFERENCE CURVES, HOW TO REDUCE SMOKING USING INDIFFERENCE S AND BUDGETL...

HOW TO REDUCE SMOKING USING INDIFFERENCE S AND BUDGETLINE

Policy implications - structure of national income , Policy Implications: ...

Policy Implications: The expansion of the services sector  has wider implications for population, employment, and trade prospects of the economy, some of which are as follows:

Short run versus long run, The Short Run versus long Run - Short-run: ...

The Short Run versus long Run - Short-run: Period of time in which the quantities of one or more production factors cannot be changed. These inputs are called as fi

Help to solve a assignment, Consider a market with short run demand and Sup...

Consider a market with short run demand and Supply functions. Qd=4-p^2, Q''s=4p-1.Find the partial market equilibrium, calculate consumer and producer surplus at this equilibrium,

Graph the total benefits and total costs functions, This problem continues ...

This problem continues the analysis from question 2. a.Another economic study finds that the marginal cost (MC) to farmers of nutrient runoff abatement is MC = .1Q. Graph this f

Production function, firm''s product sells for Rs.200 per unit in a highly ...

firm''s product sells for Rs.200 per unit in a highly competitive market. The firm produces output using capital (which it rents at Rs.7500 per hour) and labor (which is paid a wag

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