Is intruments of money market important …

(i)Instruments Money market raises funds by wide variety of short-term securities such as call money, treasury bills, trade bills, commercial paper, certificate of deposit, etc.
(ii)Duration Money market provides funds for a period of less than one year.
(iii)Participant The participants in the money market are large institutional investors such as Reserve Bank of India (RBI), commercial banks, financial institutions, non-banking finance companies, State Government, large corporate houses, etc.
(iv)Investment outlay Investment in money market entails huge sums of money as the instruments are quite expensive.
(v)Liquidity Money market instruments enjoy a high degree of liquidity as there is a formal arrangement for it. The Discount Finance House of India (DFHI) has been established for the specific objective of providing a ready market for money market instruments.
(vi)Expected return The expected rate of return of the money market is generally low as money is invested for a short duration.