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Commerce · Ch 1 — Financial Markets

Money Market

1.2

Money Market

The money market is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. These assets are close substitutes for money. It is a market where low-risk, unsecured and short-term debt instruments that are highly liquid are issued and actively traded every day. The money market has no physical location — it is an activity conducted over the telephone and through the internet. …