Money market instruments are liquid and safe, but their yields are very low compared with other securities. When the stock market is risky, the money fund can be used as a temporary safe haven for funds.
2. Repurchase, also known as compensation trade, means that one party to a transaction promises to buy a certain amount of products produced by the machine, equipment or technology and export them to the other party at the same time.
This practice is the basic form of product repurchase. Sometimes, both parties can also purchase other products provided by the importer by the exporter of machinery or equipment through agreement. The repurchase method is relatively simple, which is beneficial to enterprise cost accounting and is widely used.
Extended data:
Money market instruments are financial instruments that can be traded in the short-term capital lending market.
Among them, short-term national debt is a kind of money market tool, which is a short-term bond issued by a government to meet the temporary capital demand generated by paying first and then receiving. Short-term national debt is called national debt in Britain and America, and Britain is the first country to issue short-term national debt.
Characteristics of short-term national debt
The short-term national debt with the lowest risk is the direct debt of the government, and the government has the highest credit status in a country. Generally, there is no risk of non-repayment due. Therefore, investors usually think that investing in short-term treasury bonds is basically risk-free.
② High liquidity. Due to the low risk and high reputation of short-term treasury bonds, industrial and commercial enterprises, financial institutions and individuals are willing to invest short-term funds in short-term treasury bonds to adjust their current asset structure and create a very convenient and developed secondary market for short-term treasury bonds.
③ The term is short, basically within 1 year, mostly within half a year.
References:
Money market tools _ Baidu Encyclopedia