money market: meaning, definition, pronunciation and examples
C1Formal, Technical
Quick answer
What does “money market” mean?
A market where short-term debt securities are traded.
Audio
Pronunciation
Definition
Meaning and Definition
A market where short-term debt securities are traded.
The financial sector dealing with short-term borrowing, lending, buying and selling of securities with maturities of less than one year.
Dialectal Variation
British vs American Usage
Differences
Term is identical in spelling and meaning; no significant regional differences in usage.
Connotations
Both regions associate it with high finance, institutional investors, and central banking.
Frequency
Equally common in UK and US financial discourse.
Grammar
How to Use “money market” in a Sentence
Invest in the money marketParticipate in the money marketThe money market offers...Vocabulary
Collocations
Examples
Examples of “money market” in a Sentence
verb
British English
- The bank will money-market the surplus funds overnight.
- They are money-marketing their short-term assets.
American English
- The treasurer decided to money-market the corporate cash.
- We need to money-market these reserves.
adverb
British English
- The funds were invested money-market.
American English
- They traded the securities money-market.
adjective
British English
- She bought a money-market certificate.
- The money-market desk is very active.
American English
- He manages a money-market portfolio.
- Money-market yields are rising.
Usage
Meaning in Context
Business
The company treasury invests surplus cash in the money market.
Academic
Central bank interventions directly influence money market interest rates.
Everyday
My savings account is linked to a money market fund.
Technical
The overnight indexed swap is a key money market derivative.
Vocabulary
Synonyms of “money market”
Strong
Neutral
Weak
Vocabulary
Antonyms of “money market”
Watch out
Common Mistakes When Using “money market”
- Using plural 'moneys markets' (incorrect).
- Confusing it with 'stock market'.
FAQ
Frequently Asked Questions
No. The money market deals with short-term debt (like Treasury bills), while the stock market deals with long-term ownership shares in companies.
Yes, primarily through money market mutual funds, which pool money from many investors to buy short-term securities.
Common instruments include Treasury bills, commercial paper, certificates of deposit (CDs), and repurchase agreements (repos).
It provides liquidity for the financial system, allows governments and companies to fund short-term needs, and is a key tool for central bank monetary policy.
A market where short-term debt securities are traded.
Money market is usually formal, technical in register.
Money market: in British English it is pronounced /ˈmʌni ˈmɑːkɪt/, and in American English it is pronounced /ˈmʌni ˈmɑːrkɪt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Park your cash in the money market”
- “A flight to the money market”
Learning
Memory Aids
Mnemonic
MONEY MARKET = MONEY for the short term, MARKed by safety and liquidity.
Conceptual Metaphor
THE MARKET IS A RESERVOIR (for liquidity).
Practice
Quiz
What is the primary characteristic of money market instruments?