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Course: The basics of capital markets

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Money market

The money market is a segment of the financial market that deals with short-term borrowing and lending of funds, typically with a maturity of one year or less. The primary participants in the money market are banks, corporations, and governments that require funds for short periods. The securities traded in the money market are usually short-term debt instruments such as Treasury bills, commercial paper, and certificates of deposit (CDs). The money market is an important source of short-term funding for banks and corporations and helps to ensure the smooth functioning of the financial system by providing a stable source of short-term funding.

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