Money market is that market where transactions are made in short term securities. It means those securities where the payment period is upto one year. Since their maturity period is very short, they are also called Near Money. These securities include chiefly Call Money, Treasury Bills, Commercial Bills, Certificate of Deposit, Commercial Paper, etc.

It refers to the market that creates and exchanges financial assets.

It refers to the financial instruments or securities, e.g., shares, debentures, treasury bills, commercial papers, etc.

The demand and supply of finance usually includes the following:

Meaning: Money market is that market where transactions are made in short-term securities which are in the form of near money. It brings together the lenders who have surplus short-term investible funds and the borrowers who are in need of funds for the short-term. In this market funds can be borrowed for a short-period varying from a day, a week, a month, or 3 to 12 months and against a variety of instruments.

Money Market Instruments:

(i) Treasury Bill

(ii) Commercial Paper

(iii) Call Money or Call Loans

(iv) Certificate of Deposits