Money Market Products
In general, money market products take the form of cash deposits or other negotiable instruments placed by one financial institution with another, at an agreed-upon rate of interest, for a fixed period of time.
Money market products primarily include:
- Offshore deposits (i.e., deposits placed outside the country of denomination);
- Onshore deposits (i.e., deposits placed within the country of denomination); and
- Certificates of deposit, banker's acceptances and short-term commercial paper.
The most actively traded offshore currency deposits are the U.S. dollar and the new European currency denominated as the euro. Other actively traded offshore currency deposits are Japanese yen, British Pound sterling, Swiss francs, and Canadian dollars. Examples of onshore deposits include overnight and term U.S. federal funds.