The money market is the global financial market that is used for short-term borrowing and lending. This market provides short-term liquid assets for the global financial system. In finance, the money market only deals with various short-term transactions of assets. The money market is the place in the economy where short-term obligations are bought and sold. Short-term obligations are things such as treasury bills, banker's acceptances, and commercial paper.

The parties that make up the money market are financial institutions and dealers in money. These dealers are the ones who want to borrow or lend money and credit. The participants in the money market borrow and lend for short periods of time. The period of time can be anywhere up to thirteen months and still be considered short-term. Money market trades are made in short term financial instruments. Financial instruments are often referred to as paper. This market contrasts the capital market because the capital market deals in long-term funding that is supplied by equity and bonds.

The core of the money market is the banks that borrow and lend to each other. They use commercial paper and repurchase agreements to lend and borrow. Finance companies also fund themselves through the money market by issuing large amounts of asset-backed commercial paper to themselves which is secured by the pledge of eligible assets. Eligible assets include auto loans, mortgage loans, mortgage backed securities and credit card receivables, among others. Most large corporations issue commercial paper on their own credit.

Other common money markets are certificates of deposit, treasury bills, money market mutual funds, municipal notes and federal agency short term securities. A money market manager is a trained professional who specializes in the short term transactions and natures of money market accounts.