The term of money market can be derived from various economical markets which are done within certain economy business. This term has been quite familiar for those who often conduct certain investment. This investment is commonly done in the form of fixed income securities which major difference is short term debts and monetary instrument.
Not many people conduct this money market due to the fact that this investment requires a very high denomination which limits the investor to get access toward the investment. For such reason most of the investors find alternative ways in approaching this kind of investment that is by buying treasure bills or other market instrument which is done directly through financial institutions or federal reserve bank which have direct access to such investment market.
However such money market holds certain risks and objectives toward those who conduct this kind of investment. The objectives of the investment is that the investor can take part within money market’s rate which is higher than any saving account which has lower risk and the best time to put the money for investment is when within the peaking time. The risk of such investment is not so much high since it is a kind of short term investment, yet it the money being invested is not covered up by federal securities insurance which usually covers bank account.
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