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The money market is the market for buying and selling short-term loans and securities. The buyer of the money market instrument is the lender of money and the seller is the borrower of money. The money market in Tanzania is yet to be fully developed. Treasury bills are sold in the primary market through auctions, which started in August 1993, to commercial banks, other financial institutions, official entities, businesses, and individuals.

The money market is so important that many banks maintain active screens showing the latest prices at which they are willing to borrow and lend. At any time on a trading day, a major money-center bank would post a particular rate at which it is willing to accept three-month deposits, say 3.4%, and to lend to other high-quality banks for the same period at a higher rate, say 3.45%. The money market is so important that many banks maintain screens showing the latestprices at which they are willing to borrow and lend. The figure shows a copy of prices for Swiss-franc deposits, as published by Credit Suisse First Boston (CSFB), a large Swiss investment bank, late in the morning of 30 November 2000. The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months.

Investors didn't want to buy subprime loans any more. Even worse, short-term cash — vital to any company — dried up in the money market. Investors continued their preference for shares of Afribank Plc as a total of 473.9 million shares worth N16.9 billion were traded in 1,145 deals. The interest in the shares of the bank has sustained since the technical suspension placed on the stock was lifted on July 12, culminating in the over 220 per cent price appreciation which the stock has enjoyed since then. Investment type, asset mix, diversification, weighted average maturity, investment credit quality, and approved broker/dealers are elements of the Investment Policy. Treasury and Agency securities, A-1+ commercial paper, AAA rated money market funds, overnight repurchase agreements, A+ or better corporate bonds, certificates of deposit, and asset-backed obligations, all of which must have a stated maturity of less than 397 days.

Investors should consider a fund's objective, risks and expenses carefully before investing. This information, and other information, can be found in the fund's prospectus .

Economists who follow money supply data are also alarmed by the fact that the growth momentum of commercial bank lending is displaying a visible decline. After climbing to 12.1% in June, the yearly rate of growth of commercial bank loans fell to 6.6% in November. Economic gurus Arthur Laffer and Steve Forbes say the Fed should float its target rate and pump in new money until the yield curve rights itself, money-market credit starts to flow, and the monetary base grows larger. This may sound radical, but it was done after the 9/11 bombings and again last August when the first credit-crunch episode developed.