A money market is an agreement that brings about a direct and indirect contact between the lenders and borrowers. Borrowers like merchant, trader, manufacturer, business concern. Lenders like commercial bank, central bank, insurance company, financial concern. finance plays a very important role for the economic development of the country. finanace is defines as the provision of money at time when it is required.
Reserve bank of India describes as:-
“The centre for dealing, mainly for short term character, in monetary assets is meeting with the short term requirement of the borrowers, provide liquidity or cash to the lenders”.