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Money Market Securities

Trading Term

Instruments that trade in the money market with issuers including the US government, government agencies, banks, and corporations. These transactions provide an avenue for both acquiring money and investing excess funds for short periods. Typically, the investment period ranges from overnight to a few months, but may be as long as one year. Examples include:

  • Commercial Paper
  • Banker’s Acceptances
  • Negotiable Certificates of Deposit (CDs)
  • Federal Funds
  • Repurchase Agreement

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