Money thru recognized stock exchanges.Money Market Futures and

Money Market:
Securities industry suggests that market wherever cash or its equivalent may be
listed. Cash is the equivalent word of liquidity. Securities industry consists
of economic establishments and dealers in cash or credit World Health
Organization want to come up with liquidity. It’s higher referred to as an area
wherever giant establishments and government manage their short-term money
desires. For the generation of liquidity, short-term borrowing and loaning are
completed by these money establishments and dealers. The securities industry is
an element of economic market wherever instruments with high liquidity and
really short-term maturities are listed. Thanks to extremely liquid nature of
securities and their short-term maturities, the securities industry is treated
as a secure place. Hence, securities industry could be a market wherever
short-term obligations like treasury bills, industrial papers, and banker’s
acceptances are bought and sold.Benefits and functions of cash
Market: Cash markets exist to facilitate the economical
transfer of short funds between holders and borrowers of money assets. For the
lender/investor, it provides an honest come back to their funds. For the
recipient, it allows fast and comparatively cheap acquisition of money to hide
short liabilities. One amongst the first functions of cash market is to supply
center of attention for RBI’s intervention for influencing liquidity and
general levels of interest rates within the economy. Run batted in being the
most constituent within the securities industry aims at guaranteeing that
liquidity and short-term interest rates are in line with the financial policy
objectives.Money Market & Capital Market:
Securities industry could be a place for brief term loaning and borrowing,
usually within a year. It deals with brief term debt finance and investments.
On the opposite hand, Capital Market refers to securities market that refers to
commercialism in shares and bonds of firms on recognized stock exchanges.
Individual players cannot invest in securities industry because the worth of
investments is giant, on the opposite hand, in the capital market, anybody will
create investments through a broker. The securities market is related to high
risk and high come back as against securities industry that is safer. Further,
just in case of the cash market, deals are transacted on phone or through
electronic systems as against capital market wherever commercialism is thru
recognized stock exchanges.Money Market Futures and Options:
Active commercialism in securities industry futures and choices happens on a
range of artifact exchanges. They operate in a similar manner like several
alternative futures and choices.

Money Market Instruments:
Investment in the securities industry is completed through securities industry
instruments. Securities industry instrument meets short-term necessities for
the borrowers and provides liquidity to the lenders. Common securities industry
Instruments are as follows:

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