What is money market?

Money market is for short term funds. It is meant for use for a period of up to one year. Generally money market is a source of finance for working capital. Money market is not a fix geographical area but it constitutes all organisation and institution which deal with short-term debts. Transaction of money market includes lending and borrowing of cash for short period of time. Sale and purchase of securities having one year term all which get redeemed within one year. The common institution are reserve Bank of India, State Bank of India and other commercial banks, LIC etc.