Question

Give the meaning of 'Money Market'.

Answer 1

The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Among the most common money market instruments are negotiable certificates of deposit (CDs), banker's acceptances, commercial paper, municipal notes, federal funds and repurchase agreements (repos).