With money
day by day transforming to a product , the money market has turned into an
element of the pecuniary (economic) market. Money market developed as a result
of surplus of goods to one portion of population and deficit of goods to the
other leftover portion.
Therefore ,
money marketing can be defined as captivating the excess money from higher
classes of the society and circulating that in the market for the benefits of
all – the higher class , the under priviledged class and the agents involved in
between these two categories.
Tasks
performed by money market are as follows:
·
Relocation
of money from people with surplus commodity.
·
It
resolves the problem of distribution of capital by enabling government or
government aided organizations to raise funds .
·
It
helps in the execution of financial policies.
·
Lastly
, money market establishes short term interest rates.
The available money market instruments are as follows:
1) Deposit certificates; these are sold
by banks to its customers . it doubles itself over a certain period of time.
2) Short term mortgages and securities.
3) Agreements of buying
a product again .
SUMMARY
Thus we see various
common money market tools such as certificate of deposit , repurchase agreement
, money funds , treasury bills etc.
ABOUT THE AUTHOR
The author of this article is trying
to find out the various money marketing tools and instruments .
more details see money marketing software.
