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Definition of âfinancial instrumentâ - English Dictionary. See all translations. uk â us â FINANCE, MONEY. âº a financial asset that can be bought or sold, such as a bond, share, or other security (= an investment that can be traded): There is a simple relationship between the price of a financial instrument and its yield.
Examples of Money Market Instruments. Money market is a component of the fixed income market that is involved in short term lending and borrowing â usually less than a year. Due to the short-term maturities of financial instruments involved in the money market, these investments are typically referred to as cash investments. Securities are issued by different financing institutions such as banks, large corporations, and governments.