Money Market

Money markets are those markets where borrowing and lending of short term funds ( maturity 1 day to 1 year) takes place. Due to short maturity, the instruments of money market are liquid and can be converted to cash easily and thus are able to address.the need of the short term surplus fund of the lenders and short term borrowing requirements of the borrowers. The interest rates get determined in the money markets.

Financial assets like treasury bills, certificates of deposit, commercial paper and bankers’ acceptance are some of the short-term debt securities traded in the money market.

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Updated: December 17, 2017 — 2:54 pm

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