What is a 'Money Market'?

The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Investopedia Money Market The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Among the most common money market instruments are eurodollar deposits, negotiable certificates of deposit (CDs), banker's acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos). Breaking it Down: Money market transactions are wholesale, meaning that they are for large denominations and take place... Read More » Related to "Money Market" Financial markets: Capital vs. Money Markets There are several key differences between capital markets and money markets as components of financial markets. Check out the similarities and differences between the two markets. Read More » The Pros and Cons of Money Market Funds Find out the pros and cons of different money market funds and learn if investing in a one is right for you. Read More » What Is A Money Market Fund? Learn how money market funds provide security, but the returns may not be adequate for long-term investors. Read More » Related Definitions United States Treasury Money Mutual Funds A United States Treasury money mutual fund is a mutual fund that pools money from investors to purchase low-risk government securities. Read More » Paper Money The physical notes or currency of a country that is used as a medium of exchange is known as paper money. Read More » Broad Money Broad money is an economics term that represents the calculation of a given country's money supply including currency and coins and accessible deposits. Read More » Tax-Exempt Commercial Paper A tax-exempt commercial paper is an unsecured short-term loan which gives debt holders a tax preference on their debt investment's earnings. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com If you wish to unsubscribe, please click here, or manage subscriptions 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy