Money Market and Interest


Money markets have no widely agreed-upon definition. According to Investopedia, The money market corresponds to trading debt investments in the very short-term. It includes big-volume transactions between companies and brokers at the wholesale level. This covers, at the institutional level, money market mutual funds bought by private customers, and money market accounts held by bank clients.

Throughout both of these situations, a high degree of protection and relatively small return rates are typical of the money market (Investopedia, 2020).

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