MONEY MARKET INSTRUMENTS

A dealer buys back government securities from investors the next day at a price that is slightly greater after selling them to them, typically overnight. The implied overnight interest rate is that little price differential. Used to raise short-term funds. Also frequently used in open market operations by central banks.

Government-issued interest-bearing bonds via the central bank, Bank Negara Malaysia (BNM), to raise long-term capital from the domestic capital market to finance government development expenditures. Also distributed through designated primary dealers through tender.

A deposit instrument with a low market value. They cannot be cashed in before maturity, but they are bank-guaranteed and typically sell in a very liquid secondary market.

A negotiable document that works similarly to a postdated cheque, but the payment is guaranteed by the bank rather than the account holder. Businesses utilize this document as a comparatively secure method of payment for significant purchases.

A time deposit, is a type of financial product that credit unions, banks, and thrift stores frequently provide. differ from savings accounts in that they often have a fixed interest rate and a specified, fixed duration (generally one, three, or six months, or one to five years). The bank predicts that this instrument will be retained until maturity when it can be withdrawn and interest will be paid.