Definition
Financial markets for short-term borrowing, lending, and trading of highly liquid instruments with maturities of one year or less. These markets provide essential liquidity for financial institutions, businesses, and governments while offering investors safe, short-term investment opportunities.
Example Usage
"Corporations with excess cash often park funds in money markets to earn interest while maintaining quick access to capital for upcoming expenditures.”
Related Terms
Treasury BillsCommercial PaperRepurchase AgreementsBanker’s AcceptancesCertificates of Deposit
Tags
Short-Term DebtLow Risk
Course Module
Module 1: Introduction to Financial Markets