Tagged ‘Treasury Bill’
Unlike other financial markets, money markets help short term borrowers in finding lenders and vice versa. Moreover, money market does not deal in long term issues. When the borrowers need loans for short term, then they go to the money market where the creditors provide them the required financing. However, both lenders and borrowers do not do their business in cash but in securities, which are known as money market instruments.
Commercial paper is one of the money market instruments that have gained immense popularity recently. Normally, financial institutions and banks issue commercial papers which are promissory notes, entitling the note holder to receive the face amount on a particular date.
Tags: Bank Agreement, Business Loan, Cash Flow, Commercial Paperwork, Creditor, Financial Market, Government Action, Government Framework, Long Term Investment, Money Market, Money Market Instrument, Treasury Bill, Treasury Department
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