Money market

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Jump to: navigation, search This article is about the financial market. For the fund type, see Money market fund. For the bank deposit account, see Money market account.

Finance
Financial markets[show] Bond market Stock market (equity market) Foreign exchange market Derivatives market Commodity market Money market Spot market (cash market) Over the counter Real estate Private equity Financial market participants: Investor and speculator Institutional and retail Financial instruments[show] Cash: Deposit Option (call or put) Loans Security Derivative Stock Time deposit or certificate of deposit Futures contract Exotic option Corporate finance[show] Structured finance Capital budgeting Financial risk management

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such as GMAC. repurchase agreements and similar instruments. . mortgage-backed securities and similar financial assets. while the US Treasury issues Treasury bills to fund the US public debt.e. Certain large corporations with strong credit ratings.[1] It provides liquidity funding for the global financial system. which is supplied by bonds and equity. In the United States. such as General Electric. typically fund themselves by issuing large amounts of asset-backed commercial paper (ABCP) which is secured by the pledge of eligible assets into an ABCP conduit. Finance companies. commercial paper. These instruments are often benchmarked to (i. residential/commercial mortgage loans. federal funds. Trading in the money markets involves Treasury bills. issue commercial paper on their own credit. Examples of eligible assets include auto loans. federal. priced by reference to) the London Interbank Offered Rate (LIBOR) for the appropriate term and currency.Standards[show] ISO 31000 International Financial Reporting Economic history[show] Stock market bubble Recession Stock market crash History of private equity v•d•e The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. The core of the money market consists of banks borrowing and lending to each other. bankers' acceptances. state and local governments all issue paper to meet funding needs. Participants borrow and lend for short periods of time." This contrasts with the capital market for longer-term funding. credit card receivables.and asset-backed securities. typically up to thirteen months. and short-lived mortgage. Money market trades in short-term financial instruments commonly called "paper. States and local governments issue municipal paper. certificates of deposit. Other large corporations arrange for banks to issue commercial paper on their behalf via commercial paper lines. using commercial paper. Contents [hide] • • • • • 1 Overview 2 Common money market instruments 3 See also 4 References 5 External links [edit] Overview The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend.

the Federal Home Loan Banks and the Federal National Mortgage Association. Repurchase agreements . Federal funds .Deposits made in U. dollars at a bank or bank branch located outside the United States. Eurodollar deposit .).S. They are lent for the federal funds rate.Unsecured promissory notes with a fixed maturity of one to 270 days.Time deposits.(in the U.S. Merchant Banks • • • • • • • • [edit] Common money market instruments Certificate of deposit .• Trading companies often purchase bankers' acceptances to be tendered for payment to overseas suppliers.and asset-backed securities Liquidity crisis Money market account Money fund Money supply Overnight market Sweep account • • • • • • • • • [edit] See also • • • • • • .Short-term debt obligations of a national government that are issued to mature in three to twelve months.Exchanging a set of currencies in spot date and the reversal of the exchange of currencies at a predetermined time in the future.Short-term loans—normally for less than two weeks and frequently for one day—arranged by selling securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.Pooled short maturity. For the U.S. usually on an overnight basis.S. Short-lived mortgage.S..(in the U. thrift institutions. usually sold at a discount from face value.). Municipal notes .(in the U. and credit unions. Interest-bearing deposits held by banks and other depository institutions at the Federal Reserve. Money funds . Treasury bills .). which seek to buy higher yielding paper. Foreign Exchange Swaps . Retail and institutional money market funds Banks Central banks Cash management programs Arbitrage ABCP conduits. Federal agency short-term securities . Short-term notes issued by municipalities in anticipation of tax receipts or other revenues. these are immediately available funds that institutions borrow or lend. while themselves selling cheaper paper. Commercial paper . see Treasury bills. commonly offered to consumers by banks. high quality investments which buy money market securities on behalf of retail or institutional investors. Short-term securities issued by government sponsored enterprises such as the Farm Credit System.

ISBN 0-471-22093-0 [edit] External links Look up money market in Wiktionary.• Lombard Street. A Description of the Money Market. the free dictionary. Retrieved from "http://en. ^ Frank J. Wiley & Sons (2002).wikipedia.org/wiki/Money_market" Categories: Currency | Financial markets Personal tools • • • • Views New features Log in / create account Article Discussion Namespaces Variants • • • Actions Search Read Edit View history Top of Form Special:Search Search Bottom of Form Navigation • • • • • • • • • Main page Contents Featured content Current events Random article Donate About Wikipedia Community portal Recent changes Interaction . Mann. Fabozzi. one of the earliest popular books on the money market [edit] References 1. The Global Money Markets. Steve V. Moorad Choudhry. Wiley Finance.

a non-profit organization.. Text is available under the Creative Commons Attribution-ShareAlike License. additional terms may apply. See Terms of Use for details. Inc.• • Toolbox Contact Wikipedia Help What links here Related changes Upload file Special pages Permanent link Cite this page Create a book Download as PDF Printable version বাংলা Česky Dansk Deutsch Eesti Français 한국어 िहनदी Hrvatski Bahasa Indonesia Nederlands Polski Português Русский Srpskohrvatski / Српскохрватски தமிழ் Türkçe Українська Tiếng Việt 中文 This page was last modified on 3 October 2010 at 07:39. Wikipedia® is a registered trademark of the Wikimedia Foundation. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Print/export Languages • • .

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