Explain Money Market.

The money market refers to the market where borrowers and lenders exchange short-term funds to meet their liquidity needs. Money market instruments are generally financial claims that have low default risk, maturities under one year and high marketability. Money market instruments are certificate of deposits, commercial papers, treasury bills etc. It is used by participants as a means for borrowing and lending in short term with maturities that usually range from overnight to just under a year. Money markets are essential for the maintaining liquidity in the economy. They can further be sub divided into- Treasury Bill Market Commercial Paper Market Certificate of Deposit Market Call money market