It is a market for short term loans or fin assets.

It is a market for lending and borrowing of short term

funds.
As the name implies, it does not deal in cash or

money ,but it deals with near substitutes for money or near money like trade bills, promissory notes , govt papers drawn for a short period not exceeding one year.

 These short term

instruments can be converted into cash readily without any loss and at low transaction cost.
Money market does not refers to particular place where

short term funds are dealt with. It includes all individuals, institutions and intermediaries dealing with short term funds. The transactions between borrowers ,lenders and middlemen take place through telephone ,telegraph , mail, and agents . No personal contact or presence of 2 parties is essential for negotiations in a money market.
However a geographical name may be given to a money

market according to its location. eg; Mumbai money market is the centre for short term loanable funds of not only Mumbai but also the whole of India.

Deals with fin assets having a maturity period up to

one year only.

Deals with those assets which can be converted to

cash readily.
Transactions through telephone i.e. oral

communication . Relevant documents and written communication can be exchanged simultaneously. There is no formal place like stock exchange as in the case of a capital market.

It is not a single homogenous market. It

comprises of several submarkets each specializing in a particular type of financing. e.g. call money market , bill market and so on.
Transactions have to be conducted without the

help of brokers.

Development of trade and industry

Development of capital market. Smooth functioning of commercial banks

Effective central bank control.

Formulation of suitable monetary policy Non inflationary source of finance to govt

Call money

Short notice money

Certificate of deposits Commercial papers

Money market mutual funds

Commercial bills/bills of exchange Treasury bills