Question

Name the financial market used for raising working capital.

Explain instruments of that market?

Answer 1

Money market-

Money market refers to a market where financial instruments with high liquidity and short term maturities ranging from overnight to one year like treasury bills and commercial paper are traded. Money markets provide a variety of functions for either individual, corporate or government entities. Liquidity is often the main purpose for accessing money markets. When short-term debt is issued, it's often for the purpose of covering operating expenses or working capital for a company or government and not for capital improvements or large-scale projects.