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Distinguish between Money market and Capital market. - Economics

Distinguish Between

Distinguish between

Money market and Capital market.

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Solution

Basic for comparison Money market capital market
Meaning A segment of the financial market where lending and borrowing of short term securities are done. A section of the financial market where long term securities are issued and traded.
Nature of Market Money markets are informal in nature Capital markets are formal in nature
Financial instruments Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit, etc. Shares, Debentures, Bonds, Retained Earnings, Asset Securitization, Euro Issues, etc.
Risk Factor Money markets have a low risk Capital markets have more risk as compared to money markets
Return on Investment ROI is usually low in the money market ROI is comparatively high in the capital market
Liquidity Money markets are highly liquid Capital markets are comparatively less liquid
Concept: Capital Market in India
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 9 Money Market and Capital Market in India
Exercise | Q 6. (1) | Page 92
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 9 Money Market and Capital Market in India
Distinguish Between | Q 1
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