ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.

Detailed explanation-2: -Money Market is a financial market where short-term financial assets having liquidity of one year or less are traded on stock exchanges. The securities or trading bills are highly liquid.

Detailed explanation-3: -As per the Reserve Bank of India, the term ‘Money Market’ is used to define a market where short-term financial assets with a maturity up to one year are traded.

Detailed explanation-4: -Money markets include markets for such instruments as bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos).

Detailed explanation-5: -Marketable securities are assets that can be liquidated to cash quickly. These short-term liquid securities can be bought or sold on a public stock exchange or a public bond exchange. These securities tend to mature in a year or less and can be either debt or equity.