What is MONEY MARKET?

Banks, money dealers, institutional investors, and discount houses joined as a network, borrowing and lending within the network for the short-term, typically 90 days. Certificates of deposit, bankers’ acceptance, and commercial paper, as well as government securities like treasury bills maturing within three years, foreign exchange, and bullion are highly liquid financial instruments with maturities less than 90 days to one year that money markets will trade. Contrast to long-term borrowing and lending markets that are known as capital markets. Unlike organized markets and stock exchanges, most transactions in money markets are conducted over phone, fax, or online and are largely unregulated and informal.

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