TYPES OF MONEY MARKET INSTRUMENTS

The money market is associated with dealing in debt instruments that mature in less than a year with having a fixed income. In this blog, the types of money market instruments will be discussed clearly. The money market is the platform referred to as the financial market where short-term financial assets have liquidity less than a year or shares are traded on the stock market. The main purpose is to facilitate the short-term borrowing needs of the participant via trading bills. These participants include banks, individual investors, and large institutional investors. There are several instruments traded in the money market in NSE, BSE, and stock exchange. These securities are certificates of deposit, treasury bills, repurchase agreements, etc. money market is considered as one of the safest places to trade the most liquid securities.

Short-Term Investment Pools

STIPs include local government investment pools, money market mutual funds, and short-term investment funds that are sold as shares in the huge pool of money market instruments. One can consider the variety of money market products into one specific product for the individual investor.