The money market is a market in which the cash requirements of market participants who are long cash are met along with the requirements of those that are short cash. This is identical to any financial market; the distinguishing factor of the money market is that it provides for only short-term cash requirements. The market will always, without fail, be required because the needs of long cash and short cash market participants are never completely synchronized. The participants in the market are many and varied, and large numbers of them are both borrowers and lenders at the same time. They include:
- the sovereign authority, including the central government (“Treasury”),as well as government agencies and the central bank or reserve bank;
- financial institutions such as the large integrated investment banks,commercial banks, mortgage institutions, insurance companies, and finance companies;
- corporations of all types;
- individual private investors, such as high net-worth individuals and small savers;
- intermediaries such as money brokers, banking institutions, etc.;
- infrastructure of the marketplace, such as derivatives exchanges.
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