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MONEY MARKET

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

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