Definition Meaning Money Market

What does money market mean.

Definition meaning money market. These investments are characterized by a high degree of safety and relatively low rates of return. The money market refers to trading in very short term debt investments. Money market basically refers to a section of the financial market where financial instruments with high liquidity and short term maturities are traded money market has become a component of the financial market for buying and selling of securities of short term maturities of one year or less such as treasury bills and commercial papers.

The purpose of this market is to provide liquidity to market participants through short term. Money market can be understood as the market for short term funds wherein lending and borrowing of funds varies from overnight to a year it is an important part of the financial system that helps in fulfilling the short term and very short term requirements of the companies banks financial institution government agencies and so forth. A financial market in which short term debt instruments bills paper acceptances etc are traded that generally have maturities of one year or less.

According to the oecd glossary of statistical terms by definition. Money market definition is the trade in short term negotiable instruments such as certificates of deposit or u s. The money market is a segment of the financial markets where short term maturity securities are negotiated.

Meaning pronunciation translations and examples. A country s money market consists of all the banks and other organizations that deal with. Money market definition what does money market mean.

The system in which banks and other similar organizations buy and sell money from each other 2. The instruments used in the money markets give financial institutions governments and companies a means to finance their cash requirements over the short term.