Money market is a market for short – term funds, as the name market implies; it is a market in which money is bought and sold. It facilitate the raising of funds by business enterprises for the purchase of inventories, by banks to finance temporary reserve loss and by government to bridge the gap between its receipts/revenue and expenditure (Noko, 2011).

            Infact, money market developed because parties had surplus funds while others needed urgent cash (funds). Money market is a market that deals with short – term securities, having its maturity between one year or less. The debt instrument traded in this market includes: bankers acceptance, commercial paper, repos, negotiable certificate of deposit and government Treasury bill. Money market instrument are generally very safe investment, which return a relatively low interest rate that is mostly appropriate for temporary cash storage or short time horizons, with high liquidity.
            Unlike the market for textiles for example, there is no place that one can call a money market. Although activities in the market can be concentrated in a particular street. For example, Wall Street in New York, Loan band Street in London and Broad Street in Lagos. Transactions in the market are impersonal taking place mostly by telephone (Ajayi & Oyo 2005).
In operating money market all you need is a desk, a telephone with multiple lines and license to do business, often referred as money market Desk (Agwu, 2004).
Thus, money market is described as a wholesale marker for low risk highly liquid, short term loans. Money market is not just one market, but a series of closely connected markets. Funds are easily and quickly obtainable in the primary money market at low interest rates. In the words of Anyawu, “money market is a market for collection of financial institutions set up for the granting of short – term loans and dealing in short – term securities, gold and foreign exchange”.
            Infact, it is argued that one of the principal roles of the money market in any economy is that it serves as instrument by which the government (monetary authorities) uses to control the economic activities. Thereby, mobilizing funds from surplus sectors of the economy to the deficit sector of the economy, vis – a – vis its numerous instruments in the guest to accelerate and promote economic growth and development  in large. Money markets serve as one of the heading instrument employed by the monetary authority (CBN) to control the activities of the economy (Noko, 2011).
            Instrument traded in the money market have common features which includes: it is debt obligation, maturity last between one day and full year. Most of the instruments have a high degree of safety of principal for a number of reasons;
The debt instruments are issued by borrowers with generally high credit standing.
Money market instruments have a high degree of liquidity.
These instruments are usually in high amount units of millions or more.
The short duration of these instrument mean they negligible interest rate risk.
Most of the instruments have active secondary markets which facilitate their sales at maturity (Agwu, 2004). However, for a comprehensive analysis and understanding of the money market, its operation, function, role in economic development of any nation. A review of the broad component of money as a concept; its role in the economy; theories and impact on the economy will be assessed in this work.
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