Debt instruments, which have a maturity of less than one year at the time of issue are called money market instruments. These instruments are highly liquid and have negligible risk. The major money market instruments are Treasury bills, certificates of deposit, commercial paper, and repos. The money market is dominated by the government, financial institutions, banks, and corporates. Individual investors scarcely participate in the money market directly.
The money market instruments are:
Treasury Bills
Certificates of Deposits
Commercial Paper
Repo’s
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