In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidity funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.
There are seven different money market instruments. Treasury Bills are short term notes given by the US government, Federal Agency Notes are agencies of federal government issue both short and long term obligations, Short Term Tax Exempts this is a short term notes given by state and municipal governments, Certificates of Deposit is certificates given by bank, Commercial Paper are short term promissory notes given by financial and nonfinancial companies, Banker Acceptances are instruments and Repurchase Agreements which are treasury securities.
application of money market instrument in nigeria
How indian company are using money market instrument to enter into international market?
Commercial paper
The major money market instrument are treasury bills and bonds, federal agency.
What are the Capital Market Securities of Bangladesh
money market instrument , and bonds
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market. The equity segment of the exchange is different from other markets such as debt market and money markets.
Open market operations is the best instrument for controlling week-to-week changes in the money supply.
Open market operations is the most used instrument for controlling changes in the money supply.
open market operations
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market.
A banker's acceptance is a negotiable instrument or time draft drawn on and accepted by a bank, which upon acceptance becomes an obligation of the bank and is a marketable money-market instrument.