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What is difference between money market and capital market?
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What is difference between money market and capital market?
The money market is a financial market that focuses on the short-term borrowing and lending of securities, typically with a maturity of one year or less. It is a market for financial instruments with low risk and low returns, such as Treasury bills, commercial paper, and certificates of deposit (CDs). The money market is often considered to be a safe and liquid place to invest, as the securities traded in this market are highly liquid and are considered to be low-risk investments.
The capital market, on the other hand, is a financial market that focuses on the longer-term borrowing and lending of securities, typically with a maturity of more than one year. It is a market for financial instruments with higher risk and higher returns, such as stocks, bonds, and other securities. The capital market is where companies and governments raise long-term funds to finance their operations and growth. It is also where investors can buy and sell securities to diversify their portfolios and earn a return on their investment.
In summary, the main difference between the money market and the capital market is the maturity of the securities traded and the level of risk and return associated with those securities. The money market is focused on short-term borrowing and lending of low-risk, low-return securities, while the capital market is focused on longer-term borrowing and lending of higher-risk, higher-return securities.
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What is difference between money market and capital market?
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What is difference between money market and capital market? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is difference between money market and capital market? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is difference between money market and capital market?.
What is difference between money market and capital market? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is difference between money market and capital market? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is difference between money market and capital market?.
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