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Money Markets

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May 1, 2024 4 minute read

Money Markets are financial markets that involve the trading of short-term and highly liquid financial instruments. These instruments have a maturity of less than a year and are usually traded over-the-counter (OTC) rather than on an exchange. Money Markets play a crucial role in the financial system by providing a platform for banks, businesses, and governments to lend and borrow funds to meet their short-term liquidity needs.

Characteristics of Money Markets

Money Markets are characterized by several key features that differentiate them from other financial markets:

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Reading list

We've selected seven books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Money Markets.
An in-depth exploration of money market economics, covering topics such as market microstructure, risk management, and the impact of financial regulation.
This classic work by a Nobel laureate examines the role of money markets in central banking and provides insights into the relationship between monetary policy and economic growth.
This handbook provides a comprehensive overview of the different types of securities traded in the money market, including their characteristics and risks.
Focuses on the structure and operations of the money market, providing a detailed explanation of the different instruments traded and the participants involved.
Provides an overview of the role of money markets in monetary policy, covering topics such as open market operations and quantitative easing.
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