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INSTRUMENTS
Airaf | Uzair
Hamza | Taimoor
Hasan | Moin
Respected
Mr. Osama Bashir Soomro
(Class Teacher)
Money Market Instruments
INTRODUCTION
Money market is an important part of
the economy which provides short-term
fund. It is the part of financial market
which deals in the borrowing and
leading of short-term loans generally for
a period of less than 365 days.
Money Market Instruments
BENEFITS
Safe to Park Funds
Higher Return on Investments
Tax Free
Liquidity
Less of No Fee
Money Market Instruments
Drawback
Purchasing Power
Returns can vary
Can be riskier to
Opportunity Cost
Money Market Instruments
INSTRUMENTS
Commercial Paper
Federal Funds
Discount Window
Money Market Instruments
INSTRUMENTS
Certificates of Deposit
Eurodollars
Repurchase Agreements
Money Market Instruments
INSTRUMENTS
Swaps
Backup Line of Credit
Credit Enhancement
Money Market Instruments
INSTRUMENTS
Municipal Notes
Call Money
Treasury Bills
Money Market Instruments
C O N C LU S I O N
Money market is a vibrant market, affecting our
everyday lives. it is evident that money market
instruments can meet the short term
requirements of the borrowers and also provide
liquidity to the lenders. They also facilitate the
efficient transfer between the borrowers and
holders of the cash assets with competitive
yields and higher return.
Money Market Instruments