UPSC Exam > UPSC Videos > Indian Economy for UPSC CSE > Money Market: Money & Banking
Money Market: Money & Banking Video Lecture | Indian Economy for UPSC CSE
|
110 videos|315 docs|136 tests
|
FAQs on Money Market: Money & Banking Video Lecture - Indian Economy for UPSC CSE
| 1. What is a money market? |  |
Ans. A money market refers to a segment of the financial market where short-term borrowing and lending of funds take place. It includes various instruments such as Treasury bills, commercial papers, certificates of deposit, and repurchase agreements. The money market provides a platform for individuals and institutions to manage their short-term liquidity needs.
| 2. How does the money market work? | |
Ans. The money market works by facilitating the borrowing and lending of funds for a short duration, typically less than one year. Financial institutions, such as banks and corporations, borrow funds from investors by issuing money market instruments. Investors, in turn, earn interest on their investments. The interest rates in the money market are generally lower compared to other longer-term investments.
| 3. What are the benefits of investing in the money market? | |
Ans. Investing in the money market offers several benefits, such as safety, liquidity, and stability. Money market instruments are usually considered low-risk investments because they have a short maturity period and are backed by reliable issuers. Moreover, these investments provide high liquidity, allowing investors to access their funds quickly. Additionally, money market investments often offer stable returns, making them suitable for conservative investors.
| 4. How can individuals invest in the money market? | |
Ans. Individuals can invest in the money market through various financial instruments. Some common options include money market mutual funds, Treasury bills, certificates of deposit, and commercial papers. Money market mutual funds are a popular choice as they pool funds from multiple investors and invest in a diversified portfolio of money market instruments. These funds are typically managed by professional fund managers.
| 5. What are the risks associated with money market investments? | |
Ans. Although money market investments are generally considered low-risk, they still carry some level of risk. One of the main risks is interest rate risk, which refers to the potential for the value of the investment to decline due to changes in interest rates. Additionally, there is a possibility of default by the issuer, especially when investing in riskier money market instruments. It is important for investors to assess the creditworthiness of the issuer before investing in such instruments.
Related Exams
About this Video
|
4.1K Views |
|
4.80/5 Rating |
|
Dec 24, 2024 Last updated |
Video Description: Money Market: Money & Banking for UPSC 2024 is part of Indian Economy for UPSC CSE preparation.
The notes and questions for Money Market: Money & Banking have been prepared according to the UPSC exam syllabus.
Information about Money Market: Money & Banking covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Money Market: Money & Banking.
Introduction of Money Market: Money & Banking in English is available as part of our Indian Economy for UPSC CSE for UPSC & Money Market: Money & Banking in
Hindi for Indian Economy for UPSC CSE course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Money Market: Money & Banking Video Lecture | Indian Economy for UPSC CSE - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Indian Economy for UPSC CSE.
Information about Money Market: Money & Banking
Here you can find the meaning of Money Market: Money & Banking defined & explained in the simplest way possible.
Besides explaining types of Money Market: Money & Banking theory, EduRev gives you an ample number of questions to practice Money Market: Money & Banking tests,
examples and also practice UPSC tests.
|
110 videos|315 docs|136 tests
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
practice quizzes
,Summary
,Previous Year Questions with Solutions
,Money Market: Money & Banking Video Lecture | Indian Economy for UPSC CSE
,mock tests for examination
,Sample Paper
,past year papers
,shortcuts and tricks
,MCQs
,study material
,Exam
,Money Market: Money & Banking Video Lecture | Indian Economy for UPSC CSE
,ppt
,Objective type Questions
,video lectures
,Important questions
,Free
,Viva Questions
,Extra Questions
,Money Market: Money & Banking Video Lecture | Indian Economy for UPSC CSE
,Semester Notes
;
Study Money Market: Money & Banking on the App
Students of UPSC can study Money Market: Money & Banking alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Money Market: Money & Banking,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Money Market: Money & Banking is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup