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     Excerpt from Chapter 3,...
       Money  Markets

                           Characteristics of Money Market Instruments

Definition                When we talk about stocks and bonds, we are talking about
                            securities that are traded in the capital markets, that is, the
                            market for long term capital.  What then, is the money
                            market .  The money market is,... "the market for buying
                            and selling short term loanable funds in the form of
                            securities and loans."  It is called the money market
                            because that is what is traded there,...money.

                            While there are many different kinds of money instruments,
                            there are several common factors.  A money market
Matures                    instrument is a debt obligation which matures in 1year or
1 Year or Less         less.  In fact, the majority of money market instrument mature
                            in less than six months.  Because of the short maturity, the
                            instrument will be turned into money very soon, hence the
                            name money market.

Issued at                     A second factor that most (but not all) money market
Discount                     instruments share is that they are issued at a discount,...
                              that is, they do not pay interest.

Safety                         A third factor shared by money market instruments is
                             there safety.  While some are not quite as safe as others,
                             (commercial paper is not as safe as Treasury bills) they are
                             all considered to be "low risk" securities.

                            Types of Money Market Instruments

Treasury                     Treasury Bills are the largest money market instrument and
Bills                             are considered to be the bellwether of the money market.
                      Other Treasury securities also trade in the money market.  Any