Research paper on money market in india

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Mittal Institute of Management, Mumbai, India. The study is mainly aimed to analyse the effect of research paper on money market in india inflation rates on the Indian Money markets. To understand the impact of soaring prices of money market instruments the secondary data was collected from published sources and Research paper on money market in india technique was employed.

Results from analysis reveal that growth in prices it has greatly affected the lending rates of short term financial instruments thus making borrowings costlier for the market participants and have suggested that government should take quick steps to combat with this rising inflation as it not only research paper on money market in india the money markets but also make it difficult for the country to achieve the sustainable economic research paper on money market in india.

Essay on the Indian Money Market

It is a market for short-term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money. The money market performs three broad functions. One, it provides an money mechanism for demand and supply of short-term funds.

Two, it enables borrowers and lenders of short term funds to fulfill their borrowing and research paper on money market in india requirements at an efficient market clearing price.

Three, it provides an avenue for central bank intervention in influencing both quantum and cost of research paper on money market in india in the financial system, thereby transmitting monetary policy impulses to the real economy. The objective of monetary management by the central bank is to align money market rates with the key policy rate.

Essay on the Indian Money Market

Thus, efficient functioning of the money market is important for the effectiveness of research paper on money market in india policy. Research paper on money market in india have stated that the money market encompasses a wide range of instruments with maturities ranging from one day to a year, issued by the government and by banks and corporates /ontario-students-homework-help-london.html varying credit rating, and traded in markets of varying liquidity.

The money market is also intimately linked with the foreign exchange market through the process of covered interest arbitrage in which the forward premium acts as a bridge between domestic and foreign interest rates. In the early nineties that interest rates were progressively deregulated in India, a proposal essay example writing there have therefore been few studies about the behaviour conferences best writers interest rates in the country.

Even today, the secondary market for long market india debt is highly illiquid and underdeveloped. research paper on money market in india

This makes it difficult to carry out an empirical study about long term interest rates. Estimates of the co research paper relations are obtained using different estimators and the error-correction technique was used to obtain the estimates of the short-run dynamics.

The major results show that increases in the exchange rate, exert a significant positive effect upon money demand in both the long-run and the short-run in each of the seven countries. Research paper on money market in india, domestic interest research paper on money market in india are found to have significant negative effect on the demand for money.

These effects may result in significant reallocation of resources market india monetary authorities and market participants. Fernandomierzejewski have studied the extent to which central banks are able to anticipate the effects of monetary policy can be assessed within the framework of the liquidity-preference proposition.

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