The money market provides very short-term funds to corporations, municipalities and the United States government. Money market instruments give businesses, financial institutions and governments a means to finance their short-term cash requirements. Liquidity - Since they are fixed. As money became a commodity, the money market became a component of the financial . Moorad Choudhry, The Global Money Markets, Wiley Finance, Wiley & Sons , ISBN ; Jump up ^ "Money Market", Investopedia. Learn about the easiest way to benefit from money market securities.


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The holder may also choose to sell the BA for a discounted price on a secondary marketgiving investors a relatively safe, short-term investment.

Money Market: Banker's Acceptance

BAs are frequently used in international trade because of advantages for both sides. These instruments are very liquid and considered extremely safe.


Defaults on money market instruments have been extremely rare. Financial Advisor After the past several years, you might be addicted to equity. But when markets turn volatile, cash is the best option. Money Market Accounts Vs. Certificates of Deposit The concept and design of money market accounts is similar to that of money market investopedia accounts.

Introduction To Money Market Mutual Funds

Both offer higher yields as compared to standard checking accounts and have limited to no withdrawal facilities. In general, money market accounts have better interest rates. The latter also require higher minimum money market investopedia amounts.

  • The Money Market
  • The Money Market
  • Money Market Funds vs. Money Market Accounts
  • Money Market: What Is It?

You can also see a discussion of the differences between the two types of accounts in the video Money Market Accounts Money market investopedia.

Negotiable CDs trade will accrued interest.

Commercial Paper The largest and most creditworthy corporations use commercial paper as a way to obtain short-term funds. Commercial paper is an unsecured promissory note or an IOU issued by the corporation. Corporations will money market investopedia commercial paper to finance such things as short- term working capital or to meet their cash needs due to seasonal business cycles.