The contents of the money market include:

(1) Lending market

(2) Bill market (acceptance, discount, discount, rediscount market, etc.)

(3) Certificate of deposit market

(4) Short-term bond market, etc.

Money market characteristics

(1) Short term (Generally from March to June, the longest is no more than one year).

(2) The purpose of transaction is to solve short-term capital turnover.

(3) Financial instruments have strong "monetary nature" and are characterized by strong liquidity, stable prices, and low risks.

Based on different lending or transaction models and businesses, the market can be divided into the following categories:

1. Bank short-term credit market. It refers to international interbank lending and a place where banks provide short-term credit funds to industrial and commercial enterprises. The market was developed in the process of capital internationalization, and its function is to solve temporary short-term liquidity shortages. Lending terms in short-term credit markets vary. The shortest time is daily disbursement, usually 1 week, 1 month, 3 months, 6 months, and the longest is no more than 1 year. Libor is based on London Interbank Offered Rate. The market transaction model is relatively simple. Deposits and loans are made by phone every day, and loans do not require guarantees. In China, the bank's short-term credit market is concentrated at the National Interbank Funding Center in Shanghai. Its interest rate is known as the Shanghai Interbank Offered Rate (SHIBOR) and China's London Interbank Offered Rate. Eight varieties are released overnight, one week, two weeks, one month, two months, six months, nine months and one year. A quote banking group consists of 18 large banks.

2. Short-term securities market. Refers to bills issued by industrial and commercial enterprises with good credit to raise short-term funds. It can be issued by banks in unlimited face values, with maturities generally ranging from 4 to 6 months. The transaction is conducted through a discount to face value. Refers to commercial bills accepted by banks. Once a note is accepted by a bank, its credit will be improved, making it easier to circulate. Due to the bank's high creditworthiness, its liquidity is stronger than commercial acceptance bills. Refers to a place where short-term securities are issued and traded. Their expiration time is generally less than one year. Short-term securities here include Treasury bills, negotiable time deposits, commercial bills, banker's acceptance bills, etc., which are characterized by greater liquidity and security. There are many types of short-term credit instruments in different countries with different names, but they are all credit instruments in essence. Treasury Bills. Negotiable Certificate of Deposit. Commercial paper. Bank acceptance bill. Discount market. Refers to the trading market formed by discount financing for undue bills. The main operators in the discount market are discount companies. Credit bills for discount transactions mainly include government treasury bills, short-term bonds, bank acceptance bills and some commercial bills. The discount rate is generally higher than the bank loan interest rate.