Working Capital Management

Working Capital Management (WMC)

Money Market

Though in term of institutions or players, the demarcation between money market and capital market is very thing, yet money market is said to constitute the pre-dominant source of working capital funds for business and industry. It is, therefore, we talk nature and functions of money market which is the pool or reservoir from which the suppliers of working capital finance to business and industry draw their working finance. scottsdale homes for sale helps business to manage their assets.


Nature and Functions of money market:-

The money market is a market for short-term financial assets that are close substitutes for money. If facilitates the exchange of money for new financial claims in the primary market as also for financial claims, already issued, in the secondary market. It provides a mechanism for meeting the liquidity needs of the lenders and the short-term requirements of borrowers with minimum transaction cost and delay.
There is strictly no demarcated distinction between the short-term money market and the long-term capital market, and in fact there are integral link between the two markets as the spectrum of instruments in the two markets invariably form a continuum. However, as a matter of practice, money market deals in financial instruments/arrangements which are for a short period not generally exceeding a maturity period of 180 days.


July 1, 2008 - Posted by | Assets, Business Flow, Capital, Current Assets, Working Capital, Working Capital Management | , , ,

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