1.

Differentiate between Capital Market and Money market on the basis of:(i) Investment Outlay, (ii) Safety and (iii) Liquidity.

Answer»

Difference between Capital Market and Money Market:

BasisCapital MarketMoney Market
(i) Investment outlayInvestment outlay is smallInvestment outlay is large 
(ii) SafetyCapital Market instruments are riskier both with respect to returns and principal repayment Money market instruments are generally much safer with a minimum risk of default
(iii) Liquiditycapital market securities are comparatively less liquid.Money market securities are comparatively more liquid



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