The phrase
"money market" refers to a place or system where short-term borrowing and lending of funds occur. It is a marketplace where governments, banks, companies, and individuals trade money for a short duration, typically less than a year. These transactions involve low-risk instruments like treasury bills, certificates of deposit, and commercial papers. The
money market helps institutions manage their short-term funding needs and enables them to invest excess cash or borrow money when required.
Full definition