Instruments of Money Market
The money market is the arena in which financial institutions provide a broad range of borrowers and investors the opportunity to buy and sell various forms of short-term securities.
INSTRUMENTS OF MONEY MARKET
1. Treasury Bill (T-bills):
It is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. They are also known as Zero coupon bonds.
2. Commercial Paper:
It is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates. It usually has a maturity period of 15 days to one year.