why is such a market needed? there are several reason. first for most individuals and institutes, inflow and outflows of cash are rarely in perfect Harmony with each other for example, governments collects taxes from the public only at certain time of the year,when personal and corporate income tax payments are due. disbursements of cash must be made through out the year, however, to cover the wages and salaries of government employees, office supplies,repairs and fuel costs, as well as unexpected expenses. when taxes are collected, governments usually are flush with funds that far exceeds their immediate cash needs. at these 
times, they frequently enter the money market as lenders and purchase treasury bills, bank deposits and other attractive financial assets.later, however, as cash run law relative to current expenditures, these same governmental units must once again enter the money market as borrowers of funds, issuing short -term notes attractive to money market investors.
there are several reasons to money market needed. they are as following.
1. it plays the vital role on the mobilizing the saving the money market accumulation the scattered the scattered resources and mobilizes them.
2. the government implement the policy of deficit budget to mobilize the international resources optimum. in such a situation, the government complements the deficit budget through the money market.
3. the development of the money market plays vital role for the successful implementation of the monetary policy.
4. the capital market has a vital role for the economic development of the developing countries . the capital market does not develop unit the money market develops.
5. although there is sufficient possibility of the investment in the developing countries . they have to be deprived of the opportunity of investment due to the lack of capital in the required quantity. when the money market is developed well in the capital found is formed and it provides the opportunity of investment.
times, they frequently enter the money market as lenders and purchase treasury bills, bank deposits and other attractive financial assets.later, however, as cash run law relative to current expenditures, these same governmental units must once again enter the money market as borrowers of funds, issuing short -term notes attractive to money market investors.there are several reasons to money market needed. they are as following.
1. it plays the vital role on the mobilizing the saving the money market accumulation the scattered the scattered resources and mobilizes them.
2. the government implement the policy of deficit budget to mobilize the international resources optimum. in such a situation, the government complements the deficit budget through the money market.
3. the development of the money market plays vital role for the successful implementation of the monetary policy.
4. the capital market has a vital role for the economic development of the developing countries . the capital market does not develop unit the money market develops.
5. although there is sufficient possibility of the investment in the developing countries . they have to be deprived of the opportunity of investment due to the lack of capital in the required quantity. when the money market is developed well in the capital found is formed and it provides the opportunity of investment.
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