ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money market refers to the market for trading of short term securities and funds. Securities traded in the money market have a very short maturity period ranging from one day to one year. Such assets act as a close substitute for cash or money.

Detailed explanation-2: -A money market is a market where transactions are made in short-term securities or it is meant for those securities where the payment period is up to one year. Since their maturity period is very short, they are also termed as near money.

Detailed explanation-3: -Money Market Placements are low-risk debt instruments that mature in one (1) year or less. Money market investments are ideal for investors who are looking for short-term placements that will give better yield than a regular savings account.

Detailed explanation-4: -The primary purpose of a money market fund is to provide investors a safe avenue for investing in secure and highly liquid, cash-equivalent, debt-based assets using smaller investment amounts. In the realm of mutual-fund-like investments, money market funds are characterized as a low-risk, low-return investment.

Detailed explanation-5: -Money market funds invest in highly stable, short-term debt securities that are very low risk.