Financial Markets

The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. It consists of…

Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Commercial banks…

Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large…

Treasury Bill A Treasury bill is principally an instrument of short-term borrowing by the Government maturing in less than one year. Treasury bills are issued…

Financial markets play an important role in the allocation of scarce resources in an economy by performing the following four important functions. Mobilization of Savings…

Concepts of Financial Markets Banks and financial markets are opposing intermediaries in the financial structure, and give households a choice of where they want to…