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).

Some Things You Need to Know Before Conducting Investment

1. Know yourself

· How much money will you need in the future? (Future planning).

If you do not know your own financial goals, you will continue to feel inadequate because you do not know how many are actually in your opinion enough. So, first you need to determine how much you need to pay all expenses in your life, and to be able to retire in a state that is relatively decent and comfortable.

· What is the huge level of risk can you accept?

Each mutual fund has different risk levels that have been discussed in previous topics.

But when you look at risk, maybe you feel you are a conservative who can only accept a small risk. Actually you probably could have received a bigger risk than you think, it’s just that you need to know the dangers that accompany these risks and learn strategies to protect themselves.

· How long are you willing to wait before you can take a profit? (Tenor)

As discussed in previous topics about investing your time, here are the rules that the longer your investment period, the greater the chance of your investments to generate profits. If forced to acquire in a short time, then most likely you will fail. This is because markets are unpredictable.

2. Recognizing your commitment

· Financial budgeting.

Create a financial budget is the most realistic way to ensure that spending money is appropriate as planned.

· Consistent and consequent

In the most difficult financial budgeting is consistent in its application. Do not ever find a problem with thinking that the expenditure this month will be covered by reducing spending next month. Because in fact we rarely can do that. So how to we consistent? The most efficient way is by setting goals that can motivate us to be consistent so that the goal can be achieved.

3. Setting Goals

Every journey has a purpose and there might be more than one goal you want to accomplish. But because of various obstacles several objectives must be chosen to take precedence. After selecting where the first goal to be achieved, then you need to take into account the amount of money to achieve these objectives, so you know how much money you need.

4. Discipline

Discipline is not an easy thing to do, but you try a lot of people think that discipline sometimes for one reason or another can not fulfill its purpose, and will be more people who do not discipline that could not fulfill its purpose.