The most common money market instruments

[Starmix]

The money market also has instruments, and they are short-term debt securities with high liquidity and low risk.

Below shows the breakdown of the money market instruments:

• Treasury bills;
• Commercial Paper;
• Certificate of deposit;
• Repurchase agreements;
• Banker’s acceptances;
• Money market funds, and
• Municipal notes.

The last instrument, municipal notes, is called short-term debt obligations issued by the state and local governments. Municipal notes are used to finance short-term projects or to cover temporary budget shortfalls. They are often tax-exempt, making them attractive to investors in high tax brackets.

 

[Augusta]

Money market instruments are short-term financing instruments which can be converted easily to cash. Like Interbank loans (loans between banks

 

[Starmix]

Money market instruments will guide both parties in their quest for a money venture or money making either through investing or crediting.