MONEY MARKETS

INTRUMENTS
 FUNCTIONS OF MONEY MARKET
INSTRUMENTS
1. Provides Funds
6. Economy in Use of Cash

2. Use of Surplus Funds 7. Equilibrium between Demand

and Supply of Funds
3. No need to borrow from
banks
8. Promotes Liquidity and Safety
4. Helps Government
9. Helps in Financial Mobility

5. Helps in Monetary Policy

FEATURES OF MONEY MARKETS INSTRUMENTS

Liquidity Safety

Discounted
price
EXAMPLE OF MONEY MARKETS INTRUMENTS

01 CERTIFICATE OF DEPOSITS

02 COMMERCIAL PAPER

03 TREASURY BILLS

04 REPURCHASE AGREEMENTS

05 BANKER’S ACCEPTANCE
THANK YOU!