All of the options mentioned above are money market instruments.
A money market is an organized exchange market where participants can lend and borrow short-term, high-quality debt securities with an average maturity of one year or less. It includes instruments like tax anticipation notes, treasury notes, certificates of deposit, and commercial paper. It enables governments, banks, and other large institutions to sell short-term securities to fund their short-term cash flow needs. Money markets also allow individual investors to invest small amounts in a low-risk setting.
The money market contributes to the economic stability and development of a country by providing short-term liquidity to governments, commercial banks, and other large institutions. Investors with excess money that they do not need can invest in the money market and earn interest.
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