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12 March, 2022

What are the principal money market and capital market instruments available to the banks in Bangladesh?

 The financial market in Bangladesh is mainly of following types:

1. Money Market: The instruments that are generally traded in the money market constitute:

a) treasury bills

b) short-term bonds of govt. & central bank c) negotiable certificates of deposits

d) bankers acceptances

e) commercial papers

-   bills of exchange

-   promissory notes

-   mutual funds

2. Capital Market: The instruments that are generally traded in the capital market for medium and long term and, in cases such as equities, founspecified periods are constitute:

a) long-term government securities

b) corporate bonds

c) stocks

d) municipal bonds issued by state and local government units

e) mortgages