ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mutual Funds is not a part of Money Market.

Detailed explanation-2: -The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year.

Detailed explanation-3: -The interbank market is what people refer to when talking about the currency market. It is built of large currency trades above $1 million, e.g., CAD/USD or USD/JPY. However, the transactions are often much larger, upwards of $100 million and beyond, and occur in just seconds.

Detailed explanation-4: -The interbank money market is a market in which banks extend loans to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight. Such loans are made at the interbank rate (also called the overnight rate, if the term of the loan is overnight).