1. Introduction to Money Markets

Demarcation: the action of fixing the boundary or limits of something

Eurocurrency in this context has nothing to do with the European common currency (EUR) but is a often employed term to refer to international markets. In particular it refers to borrowing and lending in a currency outside of the borders to whom the currency belongs. For instance, a HKD deposit that is traded between two banks in London.

Paper and other terms: Another term that may be used to refer to some money market instruments is bills of exchange

Reason for using days: the exact number of days is required to calculate the interest payable to the lender

Financial institution A business entity that provides service as an intermediary for different types of financial monetary transactions

Investment banks, underwriters, and other different types of financial entities managing investments

Banks, building societies, credit unions, trust companies, and mortgage brokers

Insurance companies and pension funds

Central banks and municipalities in some jurisdictions