What are the options for investors who are saving for a short-term objective or need a safe haven for cash? It is Money Market. A money market is a place where you can buy and sell short-term funds. A period of 364 days or fewer is considered short-term. To put it another way, the loan and payback are completed in 364 days or less. Manufacturers require two forms of financing: daily expenses such as purchasing raw materials, paying workers, paying excise duty, paying electricity bills, and capital expenditures such as purchasing machinery, installing pollution control equipment, and so on.The first type of financing is used to invest in the manufacturing process for a limited time. The ‘money market' is the market where such short-term finance is borrowed and lent. Almost every concern in the financial system, whether it is a financial institution, a business enterprise, a corporation, or a government agency, faces recurring liquidity management issues, owing to the fact that expenditures and income rarely coincide.

Aparika Sharma

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