money market

Definition

Market for short-term debt securities, such as banker's acceptances, commercial paper, repos, negotiable certificates of deposit, and Treasury Bills with a maturity of one year or less and often 30 days or less. Money market securities are generally very safe investments which return a relatively low interest rate that is most appropriate for temporary cash storage or short-term time horizons. Bid and ask spreads are relatively small due to the large size and high liquidity of the market.

Use money market in a sentence

You should try and have a good money market account in place so that you are ready to take on any investment that comes along.

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The money market account was able to be maxed out if we so desired, we wanted to discuss our options with the financial adviser first.

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When I want to get guaranteed return on an investment, one of my options would be to use a money market account which can get me an agreed return.

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