Money market instruments
For the most part, money markets provide those with funds—banks, money managers, and retail investors—a means for safe, liquid, short-term investments, and they offer borrowers—banks, broker-dealers, hedge funds, and nonfinancial corporations—access to low-cost funds. The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year. Most of the money market instruments provide fixed returns. Hence, they provide quick supply of short-term funds to the borrowers. Money markets enable smooth functioning of commercial banks. They also facilitate effective implementation of the monetary policy of the Indian central bank.