MONEY MARKET Meaning and
Definition
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The term "money market" refers to a specialized segment of the financial market where short-term borrowing and lending of funds occur. It primarily deals with highly liquid and low-risk securities, usually with a maturity period of less than one year. The main participants in the money market include commercial banks, government institutions, mutual funds, corporations, and individual investors.
Money market instruments, such as treasury bills, commercial papers, certificates of deposit, and repurchase agreements, are traded in this market. These instruments act as short-term debt obligations that enable borrowers to meet their immediate financing needs or investors to park their surplus funds for a short duration, seeking a safe and moderate return.
The money market plays a crucial role in the overall financial system, providing liquidity to financial institutions, facilitating short-term borrowing for corporations, and serving as a channel for central banks to implement monetary policy. It is also instrumental in determining short-term interest rates, which influence the cost of borrowing for other sectors of the economy.
Due to the low risk associated with money market instruments, they are considered a safer investment option compared to stocks or long-term bonds. However, the returns on money market investments are generally lower as a trade-off for the reduced risk.
Overall, the money market functions as an essential component of the global financial system, providing a platform for short-term funding and liquidity management for various entities involved in the economy.
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A general term for transactions in money, in discounts, loans, and payments, in such places as Lombard Street, London, the Stock Exchange, the Bank of England, and other banks.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for MONEY MARKET *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for MONEY MARKET
- noney market
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- joney market
- miney market
- mkney market
- mlney market
- mpney market
- m0ney market
- m9ney market
- mobey market
- momey market
- mojey market
- mohey market
- monwy market
- monsy market
- mondy market
- monry market
- mon4y market
- mon3y market
Etymology of MONEY MARKET
The word "money market" has its roots in the Middle English language. The term "money" originates from the Old French word "moneie" or "monie", which itself derived from the Latin word "moneta" meaning "money" or "coin". The Latin word "moneta" comes from the name of the Roman goddess Juno Moneta, who had a temple where coins were minted. Gradually, "money" came to refer to any medium of exchange or currency.
The word "market" is derived from the Latin word "mercatus", meaning "buying and selling" or "commerce". It can be traced back to the Old French "marché" and eventually to the Proto-Indo-European root "merĝ-", which means "to trade" or "to exchange".
When "money" and "market" combine, we get the term "money market".
Similar spelling words for MONEY MARKET
- money-market fund,
- marked man/woman,
- market man,
- main market,
- money-market funds.
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