What is the money market?

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We will know about, What is the money market?

The market for short-term financial assets which have a maturity period of less than one year is known as Money Market. Bills of exchange, treasury bills, certificates of deposits, commercial papers, etc are the credit instruments of markets.

  • The market for short-term financial assets.
  • The maturity period of a credit instrument is less than one year.
  • Bills of exchange, treasury bills, etc are examples.
  • Central banks, commercial banks, brokers, and dealers are the institutions for the money market.
  • The degree of risk is low because the maturity period is less than one year.

It is the best source to invest in liquid assets.