1. Presentation For Internal assessment requirement Topic: Discount Market Submitted To: Submitted by : Mr. Pardeep Kumar Parneet Assist. Prof. of MFS 175 MBA 2nd
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3. Money market “The money market is the collective name given to the various firms and institutions that deal in the various grades of near money.” __ Crowther
4. Discount Market The part of the money market consisting of banks, discount houses, and brokers on which bills are discounted a trading market in which notes, bills, and other negotiable instruments are discounted. A market for borrowing and lending money, through certificates of deposit, Treasury bills, etc
5. Contd. Discount market refers to the market where short-term genuine trade bills are discounted by financial intermediaries like commercial banks. When credit sales are effected, the seller draws a bill on the buyer who accepts it promising to pay the specified sum at the specified period. The seller has to wait until the maturity of the bill for getting payment. But, the presence of a bill market enables him to get payment immediately. The seller can ensure payment immediately by discounting the bill with some financial intermediary by paying a small amount of money called ‘Discount rate’ on the date of maturity, the intermediary claims the amount of the bill from the person who has accepted the bill.
