Key point
- The essence of the Money Market: a market for lending and borrowing highly liquid assets with maturities of less than one year, functioning as the lifeblood of the entire financial system.
- Major players and traded products: Banks, corporations, and government agencies trade U.S. Treasury bills, negotiable certificates of deposit, commercial paper, and more.
- Connection with the cryptocurrency market: As the Money Market matures, the potential for improved liquidity of digital assets and stabilization of the market increases.
What is a Money Market?
The Money Market, as a short-term financial market, is not just a place for funding; it is an important mechanism that facilitates the smooth functioning of the entire financial economy. It is a market for the trading of short-term debt instruments with maturities of one year or less.