AVAILABLE MONEY MARKET INSTRUMENTS

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.