Wednesday, December 9, 2009

Money Market Instruments

Money Market Instruments:-
By convention, the term "Money Market" refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year. The most active part of the money market is the market for overnight call and term money between banks and institutions and repo transactions. Call Money / Repo are very short-term Money Market products. The below mentioned instruments are normally termed as money market instruments:

  1. Certificate of Deposit (CD)


  2. Commercial Paper (C.P)


  3. Inter Bank Participation Certificates


  4. Inter Bank term Money


  5. Treasury Bills


  6. Bill Rediscounting


  7. Call/ Notice/ Term Money

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