The Indian money market starting developing almost 20 years ago and today stands as a stable and mature part of Indian financial system. It is the most dynamic part of financial market as selling, buying, and trade deals that takes place hereare speedy and provide instant liquidity. The following points represent some of the best money market features that make it a preferred choice among investors and traders:
• Finance Balancing–One of the best money market features is that it allows all financial entities to borrow money and funds as per their suitability. The biggest benefit is to banks that offer money or loan on attractive loan rates and make good money. Whenever banks find a chance to earn substantial amount of interest from any other bank by money lending, it may borrow that money from some other bank and assemble a fund for lending purpose. Thus, funds demand and supply in complete banking structure can be easily balanced by this system.
• Flexibility – Flexibility in interest rates in another one of counted best money market characteristics. Money market comprise of various kind of interest rates like Government borrowing rate, depositing rates, lending rates, rates for commercial banks, rates for cooperative banks, etc.
• Maintenance of market liquidity – One of the best money market features is that it plays a major role in liquidity maintenance in market. RBI has devised several strategies to maintain market liquidity through money market. Whenever any bank needs large amount of money within a day, its borrowing interest rates amount is increased in money market and thus it helps in rapid fund raising for any bank.
• Instant Availability – Another best money market features is that their instruments are readily available in market and one doesn’t to put in much efforts to avail them.
The Indian money market has been a source of livelihood for millions whether they are market brokers, investors, traders, or regular finance service providers. Best money market benefits include ample investment options, swift returns, and a speed that provides required thrust to market momentum. It provides ample opportunity for earing not only to mature investors but also to beginners, there are several market brokers that excel in helping participantswith fair deals that yield good profits in less time.
Money market is an indispensible part of Indian economy and plays a vital role in keeping market in motion and avoiding stagnation. These markets permit refinancing small and medium term facilities and positions and help reducing liquidity risk in business. Some of the best money market instruments that have are widely used in Indian markets are stocks, treasury bills, money market mutual funds, ready forward contracts, money market options and futures, repurchase agreements, commercial papers, certificate of deposit, banker’s acceptance, etc.
Author is an online marketer and loves to write on different subjects. With this post he is sharing information on Market brokers & best money market. Visit for more information – http://www.liteforex.co.in/