After the discussion of the capital market, it is now the turn of the Indian money market that involves the movement of short-term funds among the banking and the non-banking entities as well as the government. To be specific, the Indian money market embraces broadly the call/notice money market (CNMM) where the funds are borrowed and lent for less than a fortnight, the term money market where funds are transacted for three months or more stretching up to one year and the repo/reverse repo market where treasury bills (T-bills) are sold and purchased with a specific motive. Besides, there are a couple of instruments, namely, commercial paper (CP) and certificates of deposit (CDs), quite in vogue for more than one-and-a-half ...
The Money Market
The money market