Money market:

• Money market refers to a section of financial market where financial instruments (assets) with high liquidity and short-term maturities are traded. It is a market for assets or instruments which are close substitutes for money.
• Financial assets traded in money market include treasury bills, certificate of deposits, call money, money via. money lenders, pawn, indigenous bankers, shroffs, etc.
• Money is borrowed and lent for a short term. Securities or financial assets having a maturity period of one year or less are traded in this market.
• It is important to note that unlike stock exchange, money market is not a physical location, but group of various institutions trading or dealing in money.
• Transaction takes place between two parties. One is lender and the other is borrower.
• Reserve bank, commercial banks, co-operative banks, shroffs, etc. are mainly included in the group of money lenders, while individuals, business enterprises,
  farmers, traders, state governments, central government are the borrowers of money.