Money market instruments are financial instruments that are traded in the secondary market. The instruments include short-term debt securities, bills, and bonds. There are three basic types of money market instruments: government securities, corporate securities, and bank loans. The government securities include treasury bills, treasury notes, and U.S. savings bonds; the corporate securities include preferred stock and common stock; and the bank loans include commercial paper and bank deposits.
The money market is a market for short-term debt instruments. It is also referred to as the capital market or the capital structure of an economy. The money market consists of three types of instruments: 1) short-term debt securities, 2) bills, and 3) repurchase agreements.
The instruments used in the money market are short-term securities. These are typically short-term debt instruments. The instruments in this market can be classified into two types: 1) Government securities: These are the most common securities that banks and other financial institutions hold to meet their reserve requirements. 2) Commercial paper: This is a promissory note issued by companies to their lenders and investors on a temporary basis, usually for less than one year.
Please login or Register to submit your answer