Money markets are financial markets where short-term borrowing and lending occur, typically involving instruments with maturities of one year or less. These markets facilitate the exchange of highly liquid and low-risk securities, such as Treasury bills, commercial paper, and certificates of deposit. They play a crucial role in managing liquidity for businesses and governments. Participants in money markets include banks, financial institutions, and corporations seeking to manage their short-term funding needs. Investors often use money market funds to earn returns on their cash while maintaining easy access to their funds. Overall, money markets contribute to the stability and efficiency of the financial system.