Money Market

[smurfchops]

A couple of my friends have invested money via the Money Market. I have no idea what this is ... is it a good thing, or is money better invested in a fixed rate account ??

[kjn2]

The money market is the global financial market for short-term borrowing and lending. It provides short-term liquid funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.

The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called "paper." This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.

If you have sterling pounds and do not wish to touch these funds, ask your bank to fix them for a period of 6 months IF you can leave the funds there for that period of time.