What is the Money Market?

Money market is described as the market where short term debt is dealt with. Thus financial instruments which can be quickly turned to cash is dealt with in the Money Market. Short term normally means holding period of < 1 year. The asset should be very liquid – ease of convertibility to cash, and the transactions should not be expensive to execute.

It is a specialised market geared to cater to a specialised set of buyers (lenders) and sellers (buyers).

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