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The money market is a general term for the markets in which banks lend
to and borrow from each other, trade financial instruments
such as Certificates of Deposit (CDs) or enter
agreements such as Repos and Reverses. The market normally
trades in maturities up to one year. It provides short to medium term liquidity
in the global financial system. Derivatives of the
money market include forward rate agreements (FRAs) and
futures.
Trading takes place between banks in the "money centres" (New York and London primarily, also Chicago, Frankfurt, Singapore, Hong Kong, Tokyo, Toronto, Sydney).
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