It performs the crucial role of providing a mechanism to even out short term liquidity, surpluses and deficits and in this process facilitates the working of monetary policy. Main participants in Money Market Mostly, Governments, banks and financial institutions dominate the money market. The Government is an active player in the money market and in most of the economies it is the biggest borrower in this market. Government securities and Treasury Bills are securities issued by the RBI on behalf of the Government of India to meet its borrowings for financing fiscal deficit. Apart from functioning as a banker to the government, the Central Bank (RBI) also regulates the money market and issues guidelines to govern the money market operations. Another dominant player in the money market is the banking sector. Banks mobilize deposits of savers in lending to investors of the economy. This process is called credit creation. However, banks are not allowed to use the entire amount for extending credit for investment. They are required to maintain minimum liquid and cash reserve ratios known as Statutory Liquid Ratio (SLR) and Cash Reserve Ratio (CRR). Other players like financial institutions, corporate, mutual funds, Foreign Institutional Investors etc. also are players in the money market and make transaction in the money market to fulfill their respective financial deficits and short comings. Commodity Market - An Introduction A commodity is an economic good, tradable good, product or an article . Commodities can be perishable or non-perishable. One of the most important
3 | P a g e characteristic of a commodity is that its price is determined as a function of its market as a whole.
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