UPSC Exam  >  UPSC Videos  >  Indian Economy for UPSC CSE  >  Money Market - 2

Money Market - 2 Video Lecture | Indian Economy for UPSC CSE

139 videos|315 docs|136 tests

Top Courses for UPSC

FAQs on Money Market - 2 Video Lecture - Indian Economy for UPSC CSE

1. What is the definition of a money market?
Ans. A money market refers to the financial market where short-term borrowing and lending of funds takes place. It includes various instruments like treasury bills, commercial papers, certificates of deposit, and repurchase agreements.
2. How does the money market work?
Ans. In the money market, participants borrow or lend funds for short periods, usually less than a year. Financial institutions, corporations, and governments issue short-term debt securities to raise funds, which are then bought by investors seeking low-risk investments with a relatively higher return than traditional savings accounts.
3. What are the benefits of investing in the money market?
Ans. Investing in the money market offers several benefits, such as safety and liquidity. Money market instruments are considered low-risk investments, and they can be easily converted into cash. Additionally, they provide a higher return compared to regular savings accounts.
4. What are the risks associated with the money market?
Ans. While the money market is generally considered low-risk, there are still some risks involved. The primary risk is the possibility of default by the issuer of the money market instrument. Another risk is interest rate risk, as changes in interest rates can affect the value of money market securities.
5. How can individuals invest in the money market?
Ans. Individuals can invest in the money market by purchasing money market funds offered by mutual fund companies. These funds pool money from multiple investors and invest in a diversified portfolio of money market instruments. This provides individuals with a convenient way to access the money market and benefit from its potential returns.
139 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.
10M+ students study on EduRev
Related Searches

Exam

,

practice quizzes

,

past year papers

,

Previous Year Questions with Solutions

,

shortcuts and tricks

,

Semester Notes

,

MCQs

,

ppt

,

pdf

,

Free

,

Money Market - 2 Video Lecture | Indian Economy for UPSC CSE

,

Money Market - 2 Video Lecture | Indian Economy for UPSC CSE

,

Viva Questions

,

Money Market - 2 Video Lecture | Indian Economy for UPSC CSE

,

mock tests for examination

,

video lectures

,

Extra Questions

,

Objective type Questions

,

Important questions

,

Sample Paper

,

Summary

,

study material

;