Money Market Instruments

Money market securities consist of short-term securities. In Indonesia, money market securities transactions conducted over the counter which unite brokers between sellers and buyers of securities. In some countries like the U.S. money market instruments are sold on the stock exchange on which the determination of its market value is determined by the ratings issued by agencies such as Moody’s and Standard and Poor’s.

Money market instruments are as follows:


Bank Acceptance / Notes Receivable
Accetance banks are securities that may arise because one party has claims to other parties. Therefore, parties who have the money requires money in a short time then the bill may be sold by obtaining a guarantee of payment from the bank. Usually found on the transaction export / import was done by means of letters of credit (L / C). The seller (exporter) or the overseas buyer’s bank or the overseas buyer’s bank abroad (opening bank) according to the terms of L / C; on the draft stipulated amount of money and the payment date. Bank draft towing facility while receiving banks mengaksep bank draft (accepting bank) as the bank bank facilities Acceptance Bank facility. Bank acceptance period between one to six months. Security interest is obtained by the discount system in which the interest is paid upfront in the form of a discount to face value.

Certificates of Deposit (CDs)
Certificates of deposit are securities issued by the Bank. As Bank of Acceptance, security interest be obtained using the discount. CD bias traded prior to maturity to get their cash value.


Commercial Paper (CP)
Commercial Paper, are securities issued by private companies and SOEs. CP is a letter of promise to pay back the loan amount received at a certain date. Flowers CP also be obtained using contrast discounts atauipun Acceptance Certificate of Deposit Bank, repayment of CP is not guaranteed by a bank or a right thing “(promisory Unsecured Notes).