1) " WHAT IS MONEY MARKET ..... AND DEFINE ITS DIFFERENT INSTRUMENTS "
ANS- Money Market is a market for short-term finance. Short-term is understood as less than one year. However, most of the money market activity is concentrated in between overnight and one week.
Money market includes Debt instruments like:
1.Call Money Market
2.Treasury Bills
3.Commercial Papers and Certificates of Deposits.
CALL MONEY MARKET:
---Commercial Bill market borrows call money for short period to discount commercial bills
---Banks borrow in call market to fill the 'temporary gaps',' meet the CRR', meet the sudden demand for funds which may arise due to large payments and remittances.
TREASURY BILLS:
---raised to meet the short-term funds required by government of India
---T-bills enable RBI to perform Open Market Operations which indirectly regulate the money supply
T -bills are issued in the form of 'Promissory Note'
Investors prefers T-bills because of high liquidity, assured returns, no default risk.
---T-bills comprises of maturity period of 91day,364 day.
COMMERCIAL PAPER AND CERTIFICATES OF DEPOSITS:
---Commercial Paper is an unsecured money market instrument issued in the form of promissory note.
---CD is a negotiable Promissory note, secured and short-term in nature.
(OR)
Money market is a market where short term obligations such as
treasury bills, commercial papers and banker’s acceptances are bought and sold. Its instruments are:
1) Treasury Bills (T-Bills): Treasury Bills, one of the safest money market instruments, are short term borrowing instruments of the Central Government of the Country issued through the Central Bank (RBI in India). They are zero risk instruments, and hence the returns are not so attractive.
2)Repurchase Agreements: Repurchase transactions, called Repo or Reverse Repo are transactions or short term loans in which two parties agree to sell and repurchase the same security. They are usually used for overnight borrowing. Repo/Reverse Repo transactions can
be done only between the parties approved by RBI and in RBI approved securities viz. GOI and State Govt Securities, T-Bills, PSU Bonds, FI Bonds, Corporate Bonds etc.
3)Commercial Papers: Commercial paper is a low-cost alternative to bank loans. It is a short term unsecured promissory note issued by corporates and financial institutions at a discounted value on face value.
4) Certificate of Deposit: It is a short term borrowing more like a bank term deposit account. It is a promissory note issued by a bank in form of a certificate entitling the bearer to receive interest. The certificate bears the maturity date, the fixed rate of interest and the value. It can be issued in any denomination
5)Banker’s Acceptance: It is a short term credit investment created by a non financial firm and guaranteed by a bank to make payment. It is simply a bill of exchange drawn by a person and accepted by a bank. It is a buyer’s promise to pay to the seller a certain specified amount at
certain date.
2)" ARE YOU HAPPY TO SIGN BOND WITH US ...... WHAT IF WE GIVE YOU OPTION NOT NO SIGN BOND ..... WHAT WILL YOU DO "
ANS-sir/ madam, signing a bond 4rm Hr point of view is 2 retain employees with the org, so as 2 fight employee turn over rate. AND untill I work on a job for about 1or 2 yrs, I will not gain complete knowledge about it. n there is no risk in signing the bond either. Also, there is no point in jumping 4rm 1 job 2 another. must stick with a job 4 sometime atleast 2 gain the relevant knowledge. Hence, if Im given a choice, i'l sign a bond(my choice!!)
3) "If in a rural branch in which you are posted, someone asks you for loan or money on gunpoint what will you do?"
ANS-SIDDARTH SIR'S DAD HAD FACE THIS IN REAL ,sir's dad reply to this was,"Friends my dad faced this question and he bravely said that he has got 2 brothers who are there to do last rituals of his parents. So he will not be bogged down by threats and told them to do whatever they wanted but he will not give them single penny. seeing his guts those robbers left and never came back"
4)"DO YOU HAVE ANY QUESTIONS FOR ME?"
ANS-Thank you very much sir/madam for this golden opportunity. It was wonderful experiance to know all of you.I would like to know the areas you found where I should brush up.......thanks a lot for your feedback. I will definetly improve myself as per your suggestions. I would like to hear from you very soon.
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