Financial Management M.Com Aiou Assigment 2013
Critically examine the features of various common money market instruments available in corporate sector of Pakistan. Also give theoretical background of the topic.
Name: Bilal Ahmed
Roll no: Am552469
Course: Financial management
Level: M.com
Assignment submitted to: Prof Shoaib Saleem
Couse code: 8513
ALLAMA IQBAL OPEN UNIVERISITY
Acknowledgement
All the praises are for “Allah Almighty “whose uniqueness, oneness and wholeness are absolute. He is the one who gave me courage to gain knowledge and made it possible for to accomplish the report.
All respects are for His “Holy Prophet Hazrat Muhammad” (Peace Be Upon Him) who enabled us to recognized oneness of our Creator.
Critically examine the features of various common money market instruments available in corporate sector of Pakistan. Also give theoretical background of the topic.
Money Market:
The money market exists for the purpose of issuing and trading of short-term instruments, that is, Instruments where the term remaining from the date when trading takes place to the date of maturity, is of a short-term nature.
History:
The money market developed because parties had surplus funds, while others needed cash.[3][4] Today it comprises cash instruments as well.
Participants:
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called "paper." This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.
The core of the money market consists of interbank lending--banks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments. These instruments are often benchmarked to (i.e. priced by reference to) the London Interbank Offered Rate (LIBOR) for the appropriate term and currency.
Name: Bilal Ahmed
Roll no: Am552469
Course: Financial management
Level: M.com
Assignment submitted to: Prof Shoaib Saleem
Couse code: 8513
ALLAMA IQBAL OPEN UNIVERISITY
Acknowledgement
All the praises are for “Allah Almighty “whose uniqueness, oneness and wholeness are absolute. He is the one who gave me courage to gain knowledge and made it possible for to accomplish the report.
All respects are for His “Holy Prophet Hazrat Muhammad” (Peace Be Upon Him) who enabled us to recognized oneness of our Creator.
Critically examine the features of various common money market instruments available in corporate sector of Pakistan. Also give theoretical background of the topic.
Money Market:
The money market exists for the purpose of issuing and trading of short-term instruments, that is, Instruments where the term remaining from the date when trading takes place to the date of maturity, is of a short-term nature.
History:
The money market developed because parties had surplus funds, while others needed cash.[3][4] Today it comprises cash instruments as well.
Participants:
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called "paper." This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.
The core of the money market consists of interbank lending--banks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments. These instruments are often benchmarked to (i.e. priced by reference to) the London Interbank Offered Rate (LIBOR) for the appropriate term and currency.