BUSINESS

Getting to Know the Money Market by BARCLAY PALMER, updated November 2, 2022; reviewed by MARGUERITA CHENG;

Checked for accuracy by SUZANNE KVILHAUG. You’ve probably heard the term before, but what exactly is the money market?

It is the organized exchange where people can lend and borrow a lot of money for less than a year.

The money market is a great place for big businesses, governments, banks, and other large institutions to move money, but it also helps people who want to invest smaller amounts while getting the best liquidity and safety anywhere.

The money market is the organized exchange where people lend and borrow large amounts of money for less than a year.

Because of their superior liquidity and safety, short-term money market instruments are popular with investors.

Money market mutual funds, investment pools managed by local governments, and short-term investment funds managed by bank trust departments are all examples of short-term investment pools.
Individuals have the most access to money market mutual funds.

The United States Treasury regularly issues Treasury bills to help finance deficits and refinance older T-bill issues that have reached maturity.

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