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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Money Market

Definition:

The money market is an odd name for short term bond paper. Many people want to park money for just a few months or so; as a result there is always huge demand for short term money which is relatively safe and highly liquid. It's called "money market" because it was sold as being the same as your checking account—money in the bank.

Money markets are insured by the FDIC (the Federal Deposit Insurance Corporation) and have low interest rates.