Online Course for Central Armed Police Forces (CAPF) Exam (Assistant Commandant)
Indian Economy
Money, Banking & Insurance
Meaning and Organs of Money Market
Money market refers to that mechanism whereby borrowers manage to obtain short term loanable funds on the one hand and lenders succeed in getting credit worthy borrowers for their money on the other. In this way any institution or person who is willing to provide short-period monetary debt becomes a part of the money market.
Under Indian money market, the Reserve Bank of India occupies the central position because it regulates and controls the credit supply of the country. Ordinarily, the Indian money market is divided into two parts