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Instrument that are used in money market
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[QUOTE="Mastergp, post: 274238, member: 85422"] Many people do not know what a money market is all about but let have a brief look at what it is. Well money market can be seen as a market for short term loan. The market consist of institutions or individuals who either have money to lend or wish to borrow on a short term basis. Instrument used in the money market include the following: Treasury bills: Treasury bills is normally issued by the central bank of a country, which assist the government to borrow money from the money market on short term basis. Bill of exchange: Bill of exchange refers to a promissory note which shows the acknowledgement of indebtedness by a debtors to his creditor and his intention to pay the debt on demand or at an agreed time in future normally 90 days. Call money funds: The call money fund or market is a special arrangement in which the participating institutions invest surplus money for their immediate requirements on an overnight basis with the interest and withdrawal on demands. [/QUOTE]
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Instrument that are used in money market
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