Wednesday, January 30, 2013

Economics Dose (Money Market Instruments )



Some points--- 

  • Certificates of deposit (CD), commercial paper (CP), Bill market are the instruments of money market.
  • Call / Notice money is money borrowed or lent for a very short period.
  • Treasury Bills are short-term money market instruments, which are issued by the RBI on the behalf of GOI. A considerable part of the governments borrowings takes place through Treasury Bills.
  • Bonds with variable interest rates with a fixed percentage over a benchmark rate is called floating Rate Bonds.
  • The minimum investment in government securities is Rs. 10000.