Page 53 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes 3. What is repo and reverse repo? Explain with an example.
4. Discuss the composition of Indian Money Market in Detail with the help of suitable
examples.

5. What are the various kinds of risk that are involved in money market instruments?
6. Write short notes on:
(a) Bill Market
(b) Acceptance House

(c) Discount house.

Answers to Self Assessment

1. Repo
2. Primary dealers
3. 30%

4. Commercial bill
5. Treasury Bills
6. Fortnight, 2-14 days
7. Temporary
8. Innovation

9. Near money
10. Derivative Promissory Notes
11. True

12. True
13. True
14. False
15. False

3.12 Further Readings

Books R. S. Sayers, Modern Banking, Oxford University Press, Oxford, 1967.

Y. V. Reddy, Reserve Bank of India Bulletin, March, 1999.
S. K. Muranjan, Modern Banking in India, Kamala Publishing House, Bombay,
1952,

S. G. Shah, "Interbank Money Market", The Journal of Indian Institute of Bankers,
April-June, 1978, p.63.
Government of India, Report of the Banking Commission, Bombay, 1972, 398.

48 LOVELY PROFESSIONAL UNIVERSITY