glossaryeconomicsfinance

A financial market for transacting short term (often 1 year or less) debt such as treasury bills (⇐ 1 year), commercial paper ¹ (1-270 days), etc. Considered very liquid and low risk markets due to trustworthiness of borrowers and short term maturities. Do not always have bonds as assets.

Footnotes

1. Short term debt of low risk banks and corporations ↩