ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year.

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.

Detailed explanation-3: -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.

Detailed explanation-4: -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-5: -Treasury Bills are obligations with maturity of one year or less, typically issued at a discount to the maturity value. Treasury Bonds are obligations with maturities ranging from 2 years to 25 years, typically issued at par with periodic coupon payments to be made up to final maturity.