A Money Market Fund is an open-ended mutual fund that invests in short-term, highly liquid and safe securities, providing investors with money market rates of interest. The net asset value generally remains constant at $1 per share, while the interest rate varies.
Rediscounting refers to the process where a bank or financial institution sells short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, which have already been discounted. This service involves the exchange of these instruments for a cash amount that has been adjusted to reflect the prevailing interest rate.
