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.
13 people found this useful
Thanks for the feedback!

How are you mixing up your makeup routine this summer?

View Full Interview

What are the characteristics of Indian money market?

 Charecteristics of Indian Money Market     1.  Co-existence of organized and unorganized sectors:  The peculiar feature of the Indian Money Market is  the co-e (MORE)

Investing 101: What Are Money Markets?

Money markets are chiefly a place for large institutions to manage short-term cash needs. However, individual investors also access money markets for secure, low-risk investme (MORE)

The Relationship Between a Money Market and a Bond

Both the money markets and the bond markets offer ways for large organizations to gather money on an immediate basis. The major difference between the two markets is the time (MORE)

Investment Basics: Money Markets

It has long been said in the world of finance that one has to take a significant risk if they wish to reap a significant reward. Money markets represent an alternative means t (MORE)

What are the Money market instruments in Pakistan?

The following are the Money Market instruments in Pakistan: 1) Pakistan Investment Bonds (PIBs) 2) Federal Investment Bonds (FIBs) 3) Market Treasury Bills (MTBs) 4) Term Fina (MORE)

What are the characteristics of e-markets in marketing?

Characteristics are: it uses internet, faster than manual  marketing, lot of strategies, easy to get in touch, sometimes it's  not reliable and it' online.    eMarket (MORE)