State with reason whether you agree or disagree : Money market plays important role in India.

Answer: I agree with the statement.

Reasons: The money market is the market for short-term funds. Its role in India:

1. Financing trade and industry: It provides short-term working capital to trade, commerce and industry.
2. Helps the government: The government raises short-term funds by issuing treasury bills.
3. Profitable use of surplus funds: Banks and institutions can invest surplus funds for short periods and earn returns.
4. Effective monetary policy: RBI influences liquidity and interest rates through the money market (repo, reverse repo, open market operations).
5. Maintains liquidity: It helps banks maintain liquidity through call money and other instruments.
6. Promotes economic growth: Easy availability of short-term funds supports agriculture, industry and trade, and encourages savings and investment.