Monopoly refers to a market situation where there is only single seller of a commodity and there are no close substitutes of that commodity. In such a situation, monopolist or the single seller of the commodity has some kind of power or control over the supply of a commodity and hence he is in a position to influence the price.
The problems of consumerism and lifestyle in a market economy have long been neglected. The price of consumerism is a core problem in sustainable development, because it concerns the consumption of natural resources converted into products and due to non-biodegradability of waste.
When use of bank rate is not effective enough in regulating the volume of money and credit, the central bank can resort to the use of open market operations. This instrument refers to the practice of sale and purchase of commercial paper (like trade and exchange bills) and government securities in the market.
A well-developed money market is a necessary pre-condition for the effective implementation of monetary policy. The central bank controls and regulates the money supply in the country through the money market.
The money market deals in the lending and borrowing of short-term finance (i.e., for one year or less), while the capital market deals in the lending and borrowing of long-term finance (i.e., for more than one year).
Capital market plays an important role in mobilising resources, and diverting them in productive channels. In this way, it facilitates and promotes the process of economic growth in the country.
A well-developed money market is essential for a modern economy. Though, historically, money market has developed as a result of industrial and commercial progress, it also has important role to play in the process of industrialization and economic development of a country.