The money market is a market where different instruments are traded in the short term with a margin of less than 12 months. In general, the money market is used by financial institutions to manage short-term cash needs or surpluses. A buy-back contract of a certain duration – usually the next day or the following week – is a retirement future. The government is the largest borrower on the money market and has never acted as a lender. The Indonesian government has issued a indonesia certificate (SBI) to obtain short-term funds to finance government payments and paid through tax revenues. (a) Money Order Brief is a warrant issued for payments made by banks or non-bank financial institutions. In this case, the purchaser of the guarantee can then liquidate the guarantee in an attempt to obtain the money paid in the first instance. The reason this is an inherent risk is that the value of the warranty may have decreased since the first sale. Commercial paper is an instrument of the money market in the form of securities issued by private/state-owned enterprises. CP is a letter of promise to repay debts incurred on a given day. CP interest is also obtained using the rebate other than acceptance or certificate of bank deposit, cp refund is not guaranteed by the bank or a material right (Unsecured Promisory Notes). For example, money market securities are Indonesia Bank certificates, treasury bills (SPNs), money market securities, debt recognition letters and certificates of deposit.
Here is a feeling of the various instruments of the money market: second, transactions in a specific delivery buyback contract require a loan guarantee at the beginning of the agreement and after the maturity. This type of agreement is not very common. The large business division is active in the trading of money market instruments for two purposes, namely storing surplus sorghum and obtaining higher returns than storing funds in banks.