There are many participants in money market.

Answer: The statement is justified.

The money market is the market for short-term funds (up to one year). Many institutions borrow and lend in it:

• Reserve Bank of India: the leader and regulator; it controls liquidity through repo operations and issues Treasury Bills for the Government.
• Government: borrows short-term funds through Treasury Bills.
• Commercial banks and co-operative banks: lend and borrow in the call money market and issue certificates of deposit.
• Non-banking financial companies and financial institutions such as LIC and other insurance companies, which invest surplus funds.
• Mutual funds, especially money market and liquid funds.
• Corporates: issue commercial paper and invest surplus cash.
• Discount and Finance House of India (DFHI) and primary dealers: provide liquidity in money market instruments.

As all these participate, the statement is correct.