Money Market (Noun)
Meaning
A market for short-term debt instruments.
Classification
Nouns denoting groupings of people or objects.
Examples
- Investors can buy and sell securities in the money market to manage their short-term financial needs.
- The money market provides liquidity to financial institutions by allowing them to sell commercial paper and other short-term debt instruments.
- Commercial banks often participate in the money market to manage their reserve requirements and maintain liquidity.
- Companies may issue commercial paper in the money market to raise funds for their short-term financial obligations.
- The central bank uses the money market to implement monetary policy and regulate the overall money supply in the economy.