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MONEY MONEY
MARKET MARKET MARKET MARKET
CONTENTS CONTENTS
What is Money Market? What is Money Market? yy
Features of Money Market? Features of Money Market?
Objective of Money Market? Objective of Money Market?
Importance of Money Market? Importance of Money Market?
Composition of Money Market? Composition of Money Market? Composition of Money Market? Composition of Money Market?
Instrument of Money Market? Instrument of Money Market?
Structure of Indian Money Market? Structure of Indian Money Market?
Disadvantage of Money Market? Disadvantage of Money Market?
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Continued. Continued.
Characteristic features of a developed Characteristic features of a developed
M k t? M k t? money Market? money Market?
Recent development in Money Market? Recent development in Money Market?
Summary Summary
1! What is Money Market? 1! What is Money Market?
As As per per RBI RBI definitions definitions AA market market for for short short terms terms
financial financial assets assets that that are are close close substitute substitute for for financial financial assets assets that that are are close close substitute substitute for for
money, money, facilitates facilitates the the exchange exchange of of money money in in
primary primary and and secondary secondary market market. .
The The money money market market is is a a mechanism mechanism that that deals deals
with with the the lending lending and and borrowing borrowing of of short short term term
funds funds (less (less than than one one year) year).. (( y ) y )
AA segment segment of of the the financial financial market market in in which which
financial financial instruments instruments with with high high liquidity liquidity and and very very
short short maturities maturities are are traded traded..
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Continued. Continued.
It It doesnt doesnt actually actually deal deal in in cash cash or or money money
b t b t d l d l ith ith b tit t b tit t ff hh lik lik t d t d but but deals deals with with substitute substitute of of cash cash like like trade trade
bills, bills, promissory promissory notes notes && govt govt papers papers
which which can can converted converted into into cash cash without without any any
loss loss at at low lowtransaction transaction cost cost..
It It includes includes all all individual, individual, institution institution and and
intermediaries intermediaries..
2 ! Features of Money Market? 2 ! Features of Money Market?
It It is is a a market market purely purely for for short short--terms terms funds funds or or
financial financial assets assets called called near near money money..
It It deals deals with with financial financial assets assets having having a a maturity maturity
period period less less than than one one year year only only. .
In In Money Money Market Market transaction transaction can can not not take take place place
formal formal like like stock stock exchange, exchange, only only through through oral oral
communication, communication, relevant relevant document document and and written written
communication communication transaction transaction can can be be done done. .
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Continued.. Continued..
Transaction Transaction have have to to be be conducted conducted without without the the
help help of of brokers brokers help help of of brokers brokers..
It It is is not not aa single single homogeneous homogeneous market, market, it it
comprises comprises of of several several submarket submarket like like call call money money
market, market, acceptance acceptance &&bill bill market market..
The The component component of of Money Money Market Market are are the the
commercial commercial banks, banks, acceptance acceptance houses houses & & NBFC NBFC
(Non (Non- -banking banking financial financial companies) companies)..
3 ! Objective of Money Market? 3 ! Objective of Money Market?
To To provide provide a a parking parking place place to to employ employ short short term term
surplus surplus funds funds. .
To To provide provide room room for for overcoming overcoming short short term term
deficits deficits..
To To enable enable the the central central bank bank to to influence influence and and
regulate regulate liquidity liquidity in in the the economy economy through through its its eguate eguate qudty qudty t e t e eco o y eco o y t oug t oug ts ts
intervention intervention in in this this market market..
To To provide provide a a reasonable reasonable access access to to users users of of short short--
term term funds funds to to meet meet their their requirement requirement quickly, quickly,
adequately adequately at at reasonable reasonable cost cost..
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4 ! Importance of Money Market? 4 ! Importance of Money Market?
oo Development Development of of trade trade &&industry industry.. oo Development Development of of trade trade &&industry industry..
oo Development Development of of capital capital market market..
oo Smooth Smooth functioning functioning of of commercial commercial banks banks. .
oo Effective Effective central central bank bank control control. .
Formulation Formulation of of suitable suitable monetary monetary policy policy oo Formulation Formulation of of suitable suitable monetary monetary policy policy..
oo Non Non inflationary inflationary source source of of finance finance to to
government government..
5 ! Composition of Money Market? 5 ! Composition of Money Market?
Money Money Market Market consists consists of of aa number number of of sub sub- -
k t k t hi h hi h ll ti l ll ti l tit t tit t th th markets markets which which collectively collectively constitute constitute the the
money money market market.. They They are, are,
Call Money Market Call Money Market
Commercial bills market or discount Commercial bills market or discount
market market market market
Acceptance market Acceptance market
Treasury bill market Treasury bill market
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6 ! Instrument of Money Market? 6 ! Instrument of Money Market?
AA variety variety of of instrument instrument are are available available in in a a developed developed
money money market market In In India India till till 1986 1986 only only aa few few money money market market.. In In India India till till 1986 1986,, only only aa few few
instrument instrument were were available available. .
They were They were
Treasury bills Treasury bills
Money at call and short notice in the call loan Money at call and short notice in the call loan
market. market.
Commercial bills, promissory notes in the bill Commercial bills, promissory notes in the bill
market. market.
New instrument New instrument
Now, in addition to the above the following new Now, in addition to the above the following new Now, in addition to the above the following new Now, in addition to the above the following new
instrument are available: instrument are available:
Commercial papers. Commercial papers.
Certificate of deposit. Certificate of deposit.
Inter Inter--bank participation certificates. bank participation certificates.
Repo inst ment Repo inst ment Repo instrument Repo instrument
Banker's Acceptance Banker's Acceptance
Repurchase agreement Repurchase agreement
Money Market mutual fund Money Market mutual fund
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Treasury Bills (T Treasury Bills (T- -Bills) Bills)
(T (T--bills) bills) are are the the most most marketable marketable money money market market (T (T bills) bills) are are the the most most marketable marketable money money market market
security security..
They They are are issued issued with with three three--month, month, six six--month month
and and one one- -year year maturities maturities..
TT--bills bills are are purchased purchased for for aa price price that that is is less less than than
their their par(face) par(face) value value; ; when when they they mature, mature, the the
tt th th h ld h ld th th f ll f ll ll government government pays pays the the holder holder the the full full par par value value..
TT--Bills Bills are are so so popular popular among among money money market market
instruments instruments because because of of affordability affordability to to the the
individual individual investors investors..
CDs are short CDs are short- -term borrowings in the form of term borrowings in the form of
Usance Usance Promissory Notes having a maturity of Promissory Notes having a maturity of
Certificate of deposit (CD) Certificate of deposit (CD)
Usance Usance Promissory Notes having a maturity of Promissory Notes having a maturity of
not less than 15 days up to a maximum of one not less than 15 days up to a maximum of one
year. year.
CD is subject to payment of Stamp Duty under CD is subject to payment of Stamp Duty under
Indian Stamp Act, 1899 (Central Act) Indian Stamp Act, 1899 (Central Act)
They are like bank termdeposits accounts They are like bank termdeposits accounts They are like bank term deposits accounts. They are like bank term deposits accounts.
Unlike traditional time deposits these are freely Unlike traditional time deposits these are freely
negotiable instruments and are often referred to negotiable instruments and are often referred to
as Negotiable Certificate of Deposits as Negotiable Certificate of Deposits
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AA CD CDis is a a time time deposit deposit with with aa bank bank. .
Lik Lik tt ti ti d it d it f d f d tt Like Like most most time time deposit, deposit, funds funds can can not not
withdrawn withdrawn before before maturity maturity without without paying paying
aa penalty penalty. .
CDs CDs have have specific specific maturity maturity date, date, interest interest
rate rate and and it it can can be be issued issued in in any any
d i ti d i ti denomination denomination. .
The The main main advantage advantage of of CD CDis is their their safety safety..
Anyone Anyone can can earn earn more more than than a a saving saving
account account interest interest..
Features of CD Features of CD
CDs can be issued by all scheduled commercial CDs can be issued by all scheduled commercial
banks except RRBs banks except RRBs banks except RRBs banks except RRBs
Minimum period 15 days Minimum period 15 days
Maximum period 1 year Maximum period 1 year
Minimum Amount Rs 1 lac and in multiples of Minimum Amount Rs 1 lac and in multiples of
Rs. 1 lac Rs. 1 lac
CDs are transferable by endorsement CDs are transferable by endorsement
CRR & SLR are to be maintained CRR & SLR are to be maintained
CDs are to be stamped CDs are to be stamped
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Commercial Paper Commercial Paper
Commercial Paper (CP) is an unsecured Commercial Paper (CP) is an unsecured
k t i t t i d i th k t i t t i d i th money market instrument issued in the money market instrument issued in the
form of a promissory note. form of a promissory note.
Who can issue Commercial Paper Who can issue Commercial Paper
(CP) (CP)
Highly rated corporate borrowers, primary Highly rated corporate borrowers, primary Highly rated corporate borrowers, primary Highly rated corporate borrowers, primary
dealers (PDs) and satellite dealers (SDs) dealers (PDs) and satellite dealers (SDs)
and all and all- -India financial institutions (FIs) India financial institutions (FIs)
Commercial paper (CP) Commercial paper (CP)
CP CP is is aa short short term term unsecured unsecured loan loan issued issued by by aa CP CP is is aa short short term term unsecured unsecured loan loan issued issued by by aa
corporation corporation typically typically financing financing day day to to day day
operation operation..
CP CP is is very very safe safe investment investment because because the the financial financial
situation situation of of aa company company can can easily easily be be predicted predicted
ff th th over over aa few fewmonths months..
Only Only company company with with high high credit credit rating rating issues issues
CPs CPs. .
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Eligibility for issue of CP Eligibility for issue of CP
th t ibl t th f th th th t ibl t th f th th a) a) the tangible net worth of the company, as per the the tangible net worth of the company, as per the
latest audited balance sheet, is not less than Rs. 4 latest audited balance sheet, is not less than Rs. 4
crore crore;;
b) b) (b) the working capital (fund (b) the working capital (fund--based) limit of the based) limit of the
company from the banking system is not less than company from the banking system is not less than
Rs.4 Rs.4 crore crore
c) c) and the and the borrowal borrowal account of the company is account of the company is
classified as a Standard Asset by the financing classified as a Standard Asset by the financing
bank/s. bank/s.
Rating Requirement Rating Requirement
All eligible participants should obtain the credit All eligible participants should obtain the credit
rating for issuance of Commercial Paper rating for issuance of Commercial Paper g p g p
Credit Rating Information Services of India Ltd. Credit Rating Information Services of India Ltd.
(CRISIL) (CRISIL)
Investment Information and Credit Rating Investment Information and Credit Rating
Agency of India Ltd. (ICRA) Agency of India Ltd. (ICRA)
Credit Analysis and Research Ltd. (CARE) Credit Analysis and Research Ltd. (CARE)
Duff &Phelps Credit Rating India Pvt Ltd (DCR Duff &Phelps Credit Rating India Pvt Ltd (DCR Duff & Phelps Credit Rating India Pvt. Ltd. (DCR Duff & Phelps Credit Rating India Pvt. Ltd. (DCR
India) India)
The minimum credit rating shall be P The minimum credit rating shall be P- -2 of 2 of
CRISIL or such equivalent rating by other CRISIL or such equivalent rating by other
agencies agencies
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Maturity Maturity
CP can be issued for maturities between a CP can be issued for maturities between a
i i f 15 d d i t i i f 15 d d i t minimum of 15 days and a maximum upto minimum of 15 days and a maximum upto
one year from the date of issue. one year from the date of issue.
If the maturity date is a holiday, the If the maturity date is a holiday, the
company would be liable to make company would be liable to make
payment on the immediate preceding payment on the immediate preceding payment on the immediate preceding payment on the immediate preceding
working day. working day.
Denomination Denomination
Minimum of Rs. 5,00,000/ Minimum of Rs. 5,00,000/- - and multiple and multiple
th f th f thereof. thereof.
Very little activity in Very little activity in Sec Sec. Mkt . Mkt. .
Secondary Market in CPs Secondary Market in CPs
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To whom issued To whom issued
CP is issued to and held by individuals, CP is issued to and held by individuals,
b ki i th t b ki i th t banking companies, other corporate banking companies, other corporate
bodies registered or incorporated in India bodies registered or incorporated in India
and unincorporated bodies, Non and unincorporated bodies, Non- -Resident Resident
Indians (NRIs) and Foreign Institutional Indians (NRIs) and Foreign Institutional
Investors (FIIs). Investors (FIIs).
Repurchase agreement (Repos) Repurchase agreement (Repos)
Repo Repo is is a a form form of of overnight overnight borrowing borrowing and and is is pp gg gg
used used by by those those who who deal deal in in government government
securities securities..
They They are are usually usually very very short short term term repurchases repurchases
agreement, agreement, from fromovernight overnight to to 30 30 days days of of more more..
The The short short term term maturity maturity and and government government The The short short term term maturity maturity and and government government
backing backing usually usually mean mean that that Repos Repos provide provide
lenders lenders with with extreamly extreamly low lowrisk risk. .
Repos Repos are are safe safe collateral collateral for for loans loans. .
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Repo Repo
Uses of Repo Uses of Repo
It helps banks to invest surplus cash It helps banks to invest surplus cash It helps banks to invest surplus cash It helps banks to invest surplus cash
It helps investor achieve money market returns It helps investor achieve money market returns
with sovereign risk. with sovereign risk.
It helps borrower to raise funds at better rates It helps borrower to raise funds at better rates
An SLR surplus and CRR deficit bank can use the An SLR surplus and CRR deficit bank can use the
Repo deals as a convenient way of adjusting Repo deals as a convenient way of adjusting p y j g p y j g
SLR/CRR positions simultaneously. SLR/CRR positions simultaneously.
RBI uses Repo and Reverse repo as instruments RBI uses Repo and Reverse repo as instruments
for liquidity adjustment in the system for liquidity adjustment in the system
Meaning of Repo Meaning of Repo
It is a transaction in which two parties agree to It is a transaction in which two parties agree to
sell and repurchase the same security Under sell and repurchase the same security Under sell and repurchase the same security. Under sell and repurchase the same security. Under
such an agreement the seller sells specified such an agreement the seller sells specified
securities with an agreement to repurchase the securities with an agreement to repurchase the
same at a mutually decided future date and a same at a mutually decided future date and a
price price
The Repo/Reverse Repo transaction can only be The Repo/Reverse Repo transaction can only be
done at Mumbai between parties approved by done at Mumbai between parties approved by done at Mumbai between parties approved by done at Mumbai between parties approved by
RBI and in securities as approved by RBI RBI and in securities as approved by RBI
(Treasury Bills, Central/State Govt securities). (Treasury Bills, Central/State Govt securities).
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Banker's Acceptance Banker's Acceptance
AA bankers bankers acceptance acceptance (BA) (BA) is is a a short short--term term
credit credit investment investment created created by by aa non non--financial financial credit credit investment investment created created by by aa non non--financial financial
firm firm..
BAs BAs are are guaranteed guaranteed by by a a bank bank to to make make
payment payment..
Acceptances Acceptances are are traded traded at at discounts discounts from from face face
value value in in the the secondary secondary market market..
BA BA acts acts as as aa negotiable negotiable time time draft draft for for financing financing BA BA acts acts as as aa negotiable negotiable time time draft draft for for financing financing
imports, imports, exports exports or or other other transactions transactions in in goods goods..
This This is is especially especially useful useful when when the the credit credit
worthiness worthiness of of aa foreign foreign trade trade partner partner is is
unknown unknown. .
Call Money Market Call Money Market
The call money market is an integral part of The call money market is an integral part of
the Indian Money Market where the day the Indian Money Market where the day the Indian Money Market, where the day the Indian Money Market, where the day--
to to--day surplus funds (mostly of banks) are day surplus funds (mostly of banks) are
traded. The loans are of short traded. The loans are of short- -term term
duration varying from 1 to 14 days. duration varying from 1 to 14 days.
The money that is lent for one day in this The money that is lent for one day in this
market is known as " market is known as "Call Money Call Money" and if it " and if it market is known as market is known as Call Money Call Money , and if it , and if it
exceeds one day (but less than 15 days) it exceeds one day (but less than 15 days) it
is referred to as " is referred to as "Notice Money Notice Money". ".
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Call Money Market Call Money Market
Banks borrow in this market for the Banks borrow in this market for the
following purpose following purpose following purpose following purpose
To fill the gaps or temporary mismatches To fill the gaps or temporary mismatches
in funds in funds
To meet the CRR & SLR mandatory To meet the CRR & SLR mandatory
requirements as stipulated by the Central requirements as stipulated by the Central
b k b k bank bank
To meet sudden demand for funds arising To meet sudden demand for funds arising
out of large outflows. out of large outflows.
Factors influencing interest Factors influencing interest
rates rates
The factors which govern the interest rates are The factors which govern the interest rates are
mostly economy related and are commonly mostly economy related and are commonly y y y y y y
referred to as referred to as macroeconomic factors macroeconomic factors. Some of . Some of
these factors are: these factors are:
1) 1) Demand for money Demand for money
2) 2) Government borrowings Government borrowings
3) 3) Supply of money Supply of money
4) 4) Inflation rate Inflation rate 4) 4) Inflation rate Inflation rate
5) 5) The Reserve Bank of India and the Government The Reserve Bank of India and the Government
policies which determine some of the variables policies which determine some of the variables
mentioned above. mentioned above.
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Treasury Bills Treasury Bills
Treasury bills, commonly referred to as T Treasury bills, commonly referred to as T- -Bills Bills
are issued by Government of India against their are issued by Government of India against their are issued by Government of India against their are issued by Government of India against their
short term borrowing requirements with short term borrowing requirements with
maturities ranging between 14 to 364 days. maturities ranging between 14 to 364 days.
All these are issued at a discount All these are issued at a discount- -to to--face value. face value.
For example a Treasury bill of Rs. 100.00 face For example a Treasury bill of Rs. 100.00 face
value issued for Rs 91 50 gets redeemed at the value issued for Rs 91 50 gets redeemed at the value issued for Rs. 91.50 gets redeemed at the value issued for Rs. 91.50 gets redeemed at the
end of it's tenure at Rs. 100.00. end of it's tenure at Rs. 100.00.
Who can invest in T Who can invest in T- -Bill Bill
Banks, Primary Dealers, State Banks, Primary Dealers, State
Governments, Provident Funds, Financial Governments, Provident Funds, Financial
Institutions, Insurance Companies, NBFCs, Institutions, Insurance Companies, NBFCs,
FIIs (as per prescribed norms), NRIs & FIIs (as per prescribed norms), NRIs &
OCBs can invest in T OCBs can invest in T--Bills. Bills. OCBs can invest in T OCBs can invest in T Bills. Bills.
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What is auction of Securities What is auction of Securities
Auction is a process of calling of bids with Auction is a process of calling of bids with
bj ti f i i t th k t bj ti f i i t th k t an objective of arriving at the market an objective of arriving at the market
price. It is basically a price discovery price. It is basically a price discovery
mechanism mechanism
Primary Dealers & Satellite Primary Dealers & Satellite
Dealers Dealers
P i D l b f d t M h t P i D l b f d t M h t Primary Dealers can be referred to as Merchant Primary Dealers can be referred to as Merchant
Bankers to Government of India, comprising the Bankers to Government of India, comprising the
first tier of the government securities market. first tier of the government securities market.
Satellite Dealers work in tandem with the Satellite Dealers work in tandem with the
Primary Dealers forming the second tier of the Primary Dealers forming the second tier of the
market to cater to the retail requirements of the market to cater to the retail requirements of the market to cater to the retail requirements of the market to cater to the retail requirements of the
market. market.
These were formed during the year 1994 These were formed during the year 1994- -96 to 96 to
strengthen the market infrastructure strengthen the market infrastructure
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What role do Primary Dealers What role do Primary Dealers
play? play?
The role of Primary Dealers is to; The role of Primary Dealers is to;
(i) it ti i ti P i i l i (i) it ti i ti P i i l i (i) commit participation as Principals in (i) commit participation as Principals in
Government of India issues through Government of India issues through
bidding in auctions bidding in auctions
(ii) provide underwriting services (ii) provide underwriting services
(iii) offer firm buy (iii) offer firm buy - - sell / bid ask quotes sell / bid ask quotes
for T for T--Bills & dated securities Bills & dated securities
(v) Development of Secondary Debt (v) Development of Secondary Debt
Market Market
7 ! Structure of Indian Money 7 ! Structure of Indian Money
Market? Market?
I : I :-- ORGANISED STRUCTURE ORGANISED STRUCTURE
1 R b k f I di 1 R b k f I di 1. Reserve bank of India. 1. Reserve bank of India.
2. DFHI (discount and finance house of India). 2. DFHI (discount and finance house of India).
3. Commercial banks 3. Commercial banks
i. Public sector banks i. Public sector banks
SBI with 7 subsidiaries SBI with 7 subsidiaries
Cooperative banks Cooperative banks
20 nationalised banks 20 nationalised banks
ii. Private banks ii. Private banks
Indian Banks Indian Banks
Foreign banks Foreign banks
4. Development bank 4. Development bank
IDBI, IFCI, ICICI, NABARD, LIC, GIC, UTI etc. IDBI, IFCI, ICICI, NABARD, LIC, GIC, UTI etc.
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Continued.. Continued..
II. UNORGANISED SECTOR II. UNORGANISED SECTOR
1. Indigenous banks 1. Indigenous banks 1. Indigenous banks 1. Indigenous banks
2 Money lenders 2 Money lenders
3. Chits 3. Chits
4. Nidhis 4. Nidhis
I I I . CO I I I . CO--OPERATIVE SECTOR OPERATIVE SECTOR
1. State cooperative 1. State cooperative
i t l ti b k i t l ti b k i. central cooperative banks i. central cooperative banks
Primary Agri credit societies Primary Agri credit societies
Primary urban banks Primary urban banks
2. State Land development banks 2. State Land development banks
central land development banks central land development banks
Primary land development banks Primary land development banks
8 ! Disadvantage of Money Market 8 ! Disadvantage of Money Market
Purchasing power of your money goes Purchasing power of your money goes Purchasing power of your money goes Purchasing power of your money goes
down, in case of up in inflation. down, in case of up in inflation.
Absence of integration. Absence of integration.
Absence of Bill market. Absence of Bill market.
No contact with foreign Money markets. No contact with foreign Money markets.
Limited instruments. Limited instruments.
Limited secondary market. Limited secondary market.
Limited participants. Limited participants.
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9 ! Characteristic features of a 9 ! Characteristic features of a
developed money Market? developed money Market?
Highly organaised banking system Highly organaised banking system Highly organaised banking system Highly organaised banking system
Presence of central bank Presence of central bank
Availability of proper credit instrument Availability of proper credit instrument
Existence of sub Existence of sub- -market market
Ample resources Ample resources Ample resources Ample resources
Existence of secondary market Existence of secondary market
Demand and supply of fund Demand and supply of fund
10 ! Recent development in 10 ! Recent development in
Money Market Money Market
Integration of unorganised sector with the Integration of unorganised sector with the
organised sector organised sector organised sector organised sector
Widening of call Money market Widening of call Money market
Introduction of innovative instrument Introduction of innovative instrument
Offering of Market rates of interest Offering of Market rates of interest
Promotion of bill culture Promotion of bill culture
Entry of Money market mutual funds Entry of Money market mutual funds y y y y
Setting up of credit rating agencies Setting up of credit rating agencies
Adoption of suitable monetary policy Adoption of suitable monetary policy
Establishment of DFHI Establishment of DFHI
Setting up of security trading corporation of India Setting up of security trading corporation of India
ltd. (STCI) ltd. (STCI)
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11 ! 11 ! Summary Summary
The The money money market market specializes specializes in in debt debt securities securities
that that mature mature in in less less than than one one year year..
Money Money market market securities securities are are very very liquid, liquid, and and are are
considered considered very very safe safe.. As As a a result, result, they they offer offer aa
lower lower return return than than other other securities securities..
The The easiest easiest way way for for individuals individuals to to gain gain access access to to
the the money money market market is is through through aa money money market market
mutual mutual fund fund. .
TT--bills bills are are short short- -term term government government securities securities
that that mature mature in in one one year year or or less less from fromtheir their issue issue
date date..
TT- -bills bills are are considered considered to to be be one one of of the the safest safest
investments investments..
Continued. Continued.
AA certificate certificate of of deposit deposit (CD) (CD) is is a a time time deposit deposit with with aa
bank bank. .
Annual Annual percentage percentage yield yield (APY) (APY) takes takes into into account account p g p g yy ( ) ( )
compound compound interest, interest, annual annual percentage percentage rate rate (APR) (APR)
does does not not..
CDs CDs are are safe, safe, but but the the returns returns aren't aren't great, great, and and your your
money money is is tied tied up up for for the the length length of of the the CD CD. .
Commercial Commercial paper paper is is an an unsecured, unsecured, short short--term term loan loan
issued issued by by a a corporation corporation.. Returns Returns are are higher higher than than TT--
bills bills because because of of the the higher higher default default risk risk bills bills because because of of the the higher higher default default risk risk..
Bankers Bankers acceptance acceptance (BA) (BA) are are negotiable negotiable time time draft draft
for for financing financing transactions transactions in in goods goods..
Repurchase Repurchase agreement agreement (repos) (repos) are are aa form form of of
overnight overnight borrowing borrowing backed backed by by government government
securities securities..
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Thank you Thank you