Meaning : Money market is the market for short term funds meant for use for a period of upto 1 year. Money market provides means for raising funds for meeting shortterm requirements of cash on one hand and the deployment of surplus funds for short periods (of one year or less), on the other hand. The important money market instruments or securities are 

(a) Call Money 

(b) Treasury Bills (T-Bills) 

(C) Trade Bills 

(d) Commercial Paper (CP) 

(e) Certificate of Deposit (CD). 

(a) Call Money:-. The day to day surplus funds, mostly of banks, are traded as call money. The borrowers are bank faced with a temporary shortage of cash. This may be because of reserve requirements or unforeseen demand for funds. The lenders are banks temporarily in excess of cash. That is why it is also known as the interbank call money market. The call money market is basically over the telephone market. Call money funds are for very short periods,(1 to 15 days) which may or may not be renewed, and their liquidity is next only to cash. 

(b) Treasury Bills (T-Bills):-- Treasury bills (T-Bills) are issued by Reserve Bank of India on behalf of the government of India as a short term liability, and sold to banks and to the public. The issue period ranges from 14 to 364 days.T-Bills are negotiable instruments, I.e., they are freely transferable. They do not pay any interest but are issued at a discount. 

(c) Trade Bills/Commercial Bills:--. Trade bills and accommodation bills are bills drawn by one business firm on another. They are short-term instruments generally issued for a period of 90 days. They are self liquidating as the drawee has to honour them on the date of maturity. They are freely marketable. If sellers require funds before the maturity, he can get it discounted with the bank. It is known as commercial bill after acceptance of the trade bill by a commercial bank.

(d) Commercial Paper (CP):--. A CP is an unsecured promissory note, issued by a corporate with a fixed maturity period which varies from 15 days to 12 months. Since a CP is unsecured, it is issued only by a highly creditworthy, reputed leading firms. Proceeds from, the CP are to be raised only for working capital purposes. 

(e) Certificate of Deposit (CD):-- It is a time deposit or fixed deposit which can be sold in the secondary market. Only a bank can issue a CD. It is a document of title to a time deposit. It is a bearer certificate and is negotiable in the market. It is issued by banks against deposits kept by companies and institutions. The tenure ranges from 91 days to one year.