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Money Market Instruments are simply the instruments or tools which can help one operate in the money market. These instruments serve a dual purpose of not only allowing borrowers meet their short-term requirements but also provide easy liquidity to lenders. Some of the common money market instruments include Treasury Bills (T-bills), Repurchase Agreements (repo transactions), Certificate of Deposits (CoD) and Commercial Papers (CP). Some of the notable characteristics of money market instruments are as follows. · Liquidity – Money market instruments are highly liquid because they are fixed-income securities which carry short maturity periods of a year or less. · Safety – Issuers of money market instruments usually have strong credit ratings, indicating higher safety. Discount Pricing – Another important characteristic feature of money market instruments is that they are issued at a discount on their face value i.e. they are usually in the nature of zero-coupon instruments.
Rs.26000 is split into two sums such that the Simple Interest on one part for 5 years at 10% equals the Simple Interest on the other part for 6 years at...
Rs. 2000 invested for 2 years in a scheme offering compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 20 less than the in...
Rs. 16000 invested for 2 years in a scheme offering compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 25 less than the i...
A certain sum of money amounts to Rs 1331 in 3 years at 10 percent compounded annually. Find the value of (CI-SI)?
At what % of simple interest per annum will Rs. 400 amount to Rs. 580 in five years?
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Kiran lent Rs. 40,000 to a friend at a compound interest rate of 'b%' per annum, compounded annually. After one year, the friend returned Rs. 44,800. If...
