Awareness of putting money away for some people is still difficult. Besides because some people feel the income received every month is just mediocre even some people feel his income every month less in meeting the needs of life or lifestyle. Yet by setting aside money to invest, we can prepare any kind of needs both short and long term. Investing can be done anywhere, the type of investment most easily found, safe, and have a small risk is in the Bank. Banks are small-scale investments. But some people especially entrepreneurs want to invest in a large scale where the Bank is not an ideal place for entrepreneurs who want to invest in a large scale
Places used to invest large scale there are 2 types, namely money market and capital market. What distinguishes between the money market and the stock market is the time frame. The money market is used for securities investment in the short term, while the capital markets are used for long-term investments.
On this topic we will focus more on the money market. Money market or known as money market which is a market with short-term financial instrumental, generally traded is a commodity with high quality. The term of the money market instrument usually matures in one year or less than one year. Money markets are also known as short-term credit markets. The money market itself is required by companies and individuals who experience unsuitable cash flows between inflows and outflows.
Example: At a given time the company collects the client and at other times the company must spend to cover the operational costs. As a solution for companies with cash deficits, the company can temporarily enter the money market as a borrower by searching for financial institutions or other parties with excess funds. Further, by the time the company has excess funds, it becomes a creditor in the money market for revenue rather than allowing unused funds.
The purpose of this money market for those who need funds to meet the needs of short-term, meet the needs of liquidity, meet working capital needs, and if you are losing clearing. In contrast to the existence of this money market for those who invest funds is to earn income with a certain interest rate, helping the parties who are experiencing financial difficulties, as well as speculation.