The wholesale money market is where short-term borrowing and lending take place, primarily in the form of certificates of deposit, commercial paper, and Treasury bills. These instruments are issued by banks, corporations and government entities to raise funds for their short-term needs such as working capital, inventory, and accounts payable. The investors in these instruments are typically other financial institutions and large corporations, who seek to earn a return on their cash balances and manage their liquidity.

The wholesale money market is a vital source of short-term funding for many financial institutions, and it plays a key role in ensuring the stability and efficiency of the overall financial system.