MONEY MARKET

BY
DEEPA SOMANI.P
Meaning of Money Market

Definition Simple Terms

• The money market is a • A money market

component of
the financial markets for
assets involved in short-
term borrowing and
lending with original
maturities of one year or
shorter time frames.
account is a type of
savings account offered by
banks and credit
unions just like regular
savings accounts.
Difference ….?!?!?

• The difference is that

– they usually pay higher interest,
– have higher minimum balance requirements (sometimes
$1000-$ 2500), and
– only allow three to six withdrawals per month.
• Another difference is that, similar to a checking account,
many money market accounts will let you write up to three
checks each month.
Safety
• With bank accounts, the money in a money market account is
insured by the Federal Deposit Insurance
Corporation (FDIC), which means that even if the bank or
credit union goes out of business, your money will still be
there.
• Not a single person has lost money in a bank or credit union
that was insured by the FDIC since it began. With credit
unions, the money in a money market account is insured by
the National Credit Union Administration (NCUA), a
federal agency
• Trading in the money markets
involves Treasury bills, commercial
paper, bankers' acceptances, certificates of
deposit, federal funds, and short-
lived mortgage-and asset-backed securities.