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Differentiate Between `Capital-market' and 'Money-market' on the Following Basis: Liquidity

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Question

Differentiate between `capital-market' and 'money-market' on the following basis:

Liquidity

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Solution

The basis of Difference Capital Market Money Market
Liquidity Securities are liquid only to the extent that they are tradable on stock exchanges. However, they are
comparatively less liquid than money market securities.
Securities are highly liquid as DFHI provides a ready market for them.
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2013-2014 (March) Delhi Set 1
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