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demand and supply shocksthe influence of the above macroeconomic factors on the economic performance can be analyzed by classifying their impact on
global economythe size of the world stock market grew steadily in the 1970s and 1980s and crossed the 12 trillion figure in 1993 the share of the us
secondary marketthe major participants in secondary market are banks brokerage firms and bond houses they buy and sell t-bills on behalf of customers
the distinct features of cds arecd is a document of title to a time deposit and is distinct from conventional time deposit with respect to
purpose of issuecds benefit both issuers and investors from the issuers banks point of view cds are issued foreseeing the advantages over
issuing proceduretreasury bills are sold using the auction procedure the treasury entertains both competitive and non-competitive tenders for t-bills
discount pricingthe t-bills are issued at a discount to face value and hence have no couponcommission rates on round lots generally range from 1250
types of t-billsin the us markets though there are many types of t-bills they can be broadly classified into two types - regular-series bills and
treasury bills in international marketsa brief discussion on treasury bills in international markets is given belowprimary markett-bills are
clearing and settlementthe treasury bills are available in physical form if an investor desires so the market is mostly dominated by institutional
364-day t-billsthe government considered that it is important to develop government securities market for monetary control it also had an intention
91-day t-billsstarting from july 1965 91-day t-bills were issued at a discount rate ranging from 25-46 percent per annum till july 1974 the discount
182-day t-billsfollowing the sukhamoy chakravarty committee recommendations in november 1986 182-day t-bills were introduced in order to develop the
development of the marketuntil 1950s t-bills were issued by both the central and state governments and from 1950s it is only the central government
issuing procedure of treasury billsas discussed above the rbi on behalf of central government announces the auctioning of t-bills by tender
ways and means advances wmaswma is not a permanent source of financing government deficit but this is likely to provide greater autonomy to the rbi
types of treasury billstreasury bills are issued at various maturities generally up to one year thus they are useful in managing short-term liquidity
features of treasury billstreasury bills are short-term rupee denominations issued by the reserve bank of india rbi on behalf of the government of
lending rates in the credit marketone of the crucial decisions involved while extending loans is the lending rate intermediaries will base their
need for credit and its natureon the demand side of the economy are the consumers of goods and services who require funds basically for acquiring
credit marketsthe financial system enables supply of funds to support purchase of goods and services and to finance capital investments in this way
forms of regulationthere are different forms of regulation to regulate market to fulfill certain objectives these are discussed belowdisclosure
role of government in the financial marketsmany countries felt that the government should regulate certain aspects of the financial markets based on
role of financial intermediaries in the financial systemhaving designed the instrument the issuer should then ensure that these financial assets
investors considerationsas mentioned above every investor before taking an investment decision must consider the following aspectsrisk the primary