Ans: Money market is a short term financial market. In other words, money market refers to the trading of short term debt instruments. Money market is one of the pillars of financial system as a whole. Money market serves the purpose of meeting short term cash requirements of organizations, households, financial institutions and government. Money markets provide opportunity of investment for all those who have surplus funds to invest in securities having less than one year maturity. Money market provides opportunity for making effective use of the idle funds on a temporary basis.##