Definition of Money market
The money market is where economical equipment with high resources and very brief maturities are traded.
Brief Explanation of Money market
Among the most common market equipment is Eurodollar remains flexible accreditations of down payment (CDs), lenders acceptances, U.S. Treasury bills, professional document, public notes, and federal resources and repurchase contracts (repo). It is used by members as a means for credit and lending in temporary, with maturities that usually range from overnight to just under a year. Its dealings are wholesale, meaning that they are for big variations and occur between banking organizations and organizations rather than people. Institutions that participate in the money market include banks that offer to one another and to huge organizations in the European currency and time down payment markets. Its resources offer people the opportunity to invest smaller amounts in these resources. Businesses that raise money by selling professional document into the marketplace, which can be bought by other organizations or funds; and investors who purchase bank CDs as a safe home to park profit temporarily.