List the main functions of money market.

 List the main functions of money market. 

Ans. The main functions of money market are as follows: 

(i) Money Market provides a mechanism through which an equilibrium between surplus funds and demand for lonable funds can be met. 

(ii) It provides a focal point for central bank through which it can interfere to influence interest rates. 

(iii) It provides a market for borrowers and lenders where they can fulfil their borrowing and investment requirements at an efficient market clearing price.