money market instrument
/ˈmʌni ˈmɑːrkɪt ˈɪnstrəmənt/ · mon·ey mar·ket in·stru·ment
noun
- A short‑term debt security or financial asset that is traded in the money market, typically offering high liquidity and low credit risk. Corporations often park excess cash in money market instruments such as Treasury bills to earn a modest return while preserving liquidity.
- Any financial instrument used for borrowing or lending in the money market, including Treasury bills, commercial paper, and certificates of deposit. The firm’s treasury manager diversified the portfolio by holding a mix of money market instruments.
Synonyms
short‑term securitymoney market securitycash‑equivalentliquidity instrumentshort‑term instrumentcommercial paperTreasury billcertificate of deposit
Antonyms
Did you know? During the 2008 financial crisis, investors flocked to money market instruments, prompting regulators to tighten rules on their credit quality to protect the stability of the short‑term funding market.