Money markets
'Money markets' is a generic term covering the vast market for short-term cash loans and deposits.
'Money markets' is a generic term covering the vast market for short-term cash loans and deposits organised between institutions such as banks, companies and even the government plus the market for tradable securities that have a life of less than 12 months.
Cash is lent and borrowed at 'money market rates' which vary both by currency and also according to time. So, for example, the rate earned on a one-month US dollar deposit will naturally not be the same as that available on a three-month yen deposit.
Then there are 'money market instruments' which create liquidity. One example is Treasury bills, which are IOUs which enable the Treasury to borrow and lend funds over periods ranging up to a year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
How does the Lifetime ISA work? Key LISA rules
What is a Lifetime ISA (LISA) and how much could the government bonus boost your savings by? We look at the perks and the pitfalls.
-
AJ Bell: a fine British fintech going cheap
Opinion Don’t overlook investment platform AJ Bell, a significantly undervalued British business with an excellent financial base