What are the major characteristics of money market instruments?

1. Money market generates higher rate of returns than holding cash.
2. Money Market funds are liquid
3. low risk

The three fundamental characteristics of money market instruments are: (a) low default risk, (b) short-term to maturity, and (c) high marketability. These characteristics give money market instruments their characteristic of being low risk. Money market investors demand low-risk securities because their cash excesses are only temporary.
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