The money market refers to trading in very short-term debt investments, short-term debt instruments are traded on the money market. It involves an ongoing exchange of funds among businesses, government, banks, and other financial institutions for terms that can range from one night to as long as a year.
At the wholesale level, it involves large-volume
traders between institutions and traders. At the retail level, it includes
money market mutual funds bought by individual investors and money market accounts
opened by bank customers.
In all these cases, the money market is
characterized by a high degree of safety and relatively low rates of return.
The money market comprises banks and financial
institutions as intermediaries, 20 of them are primary dealers in treasury
securities. Interbank clean and repo-based lending. BB’s repo, reverse repo
auctions. BB bills auctions and treasury bills auctions are primary operations
in the money market, there is also active secondary trade in treasury bills (up
to 1 year maturity).