The Money Market consists of several financial instruments designed to provide liquidity and stability for investors and institutions. These instruments include treasury bills, commercial paper, certificates of deposit, and bankers’ acceptances, all of which play unique roles in maintaining financial balance. Due to their short maturity period, these instruments carry lower risk compared to long-term investments.
Treasury bills are widely recognized for their safety as they are backed by government guarantees. Commercial paper offers corporations quick access to short-term funds, while certificates of deposit provide fixed interest returns. Repurchase agreements allow institutions to borrow funds by pledging securities temporarily. Together, these instruments help investors manage funds securely and maintain consistent liquidity in the financial system.