question_answer

Nature of money market can be well explained with the help of its features. State any three such features of money market.

Answer:

Features of money market are as follows:

(i) It deals in short-term monetary assets, whose period of maturity is upto one year.

(ii) It is a market where low risk, unsecured and short-term debt instruments are issued and actively traded every day.

(iii) Liquidity is provided by the Discount and Finance House of India, specially formed for this purpose.