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Money market plays a vital role in facilitating government financing and supporting overall economic stability is pivotal to India’s economic health and growth. Discuss.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Money market plays a vital role in facilitating government financing and supporting overall economic stability is pivotal to India’s economic health and growth. Discuss. (250 words)

Difficulty level: Easy

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable.

Key Demand of the question:

To write about importance of money markets.

Structure of the answer:

Introduction: 

Begin by defining money markets.

Body:

Write about the importance of money market for India’s economy – Development of Trade and Industry, Development Of Capital Market, Smooth Functioning of Commercial Banks, Formulation Of Suitable Monetary Policy etc. Cite statistics to substantiate.

Conclusion:

Conclude by summarising.