1.

Distinguish between Money Market and Capital Market on the basis of: (a) Investment outlay (b) Duration (c) Liquidity and (d) Instruments.

Answer»
BasisCapital MarketMoney Market
Instruments Instruments traded are shares, debentures and bonds. Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill.
Investment outlayInvestment outlay is small.Investment outlay is large.
DurationIt deals in medium term and long term securitiesIt deals in short term securities
Liquidity Capital market securities are comparatively less liquid.Money market securities are comparatively more liquid.


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