1.

Differentiate between Capital Market and Money Market on the basis of : (a) Liquidity (b) Duration (c) Expected Return (d) Safety

Answer»
BasisCapital Market Money Market
Liquidity Capital market securities are considered liquid but less liquid than money market securities.Money market securities enjoy higher degree of liquidity. 
Duration Capital market deals with medium and long term securities.  Money Market deals with short term securities. 
Expected Return The investment in capital markets yield higher return due to longer duration. The investment in money market yields less return due to short duration. 
Safety Capital market securities are riskier than money market instruments. Money market securities are comparatively safer than capital market securities. 



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