Write any three differences between money market and capital market.
Answer»
Features
Money Market
Capital Market
Duration of Funds
It is a market for short-term loanable funds for a period of not exceeding one year.
It is a market for long-term funds exceeding period of one year.
Supply of Funds
This market supplies funds for financing current business operations working capital requirements of industries and short period requirements of the government.
This market supplies funds for financing the fixed capital requirements of trade and commerce as well as the long-term requirements of the government
Deals with Instruments
It deals with instruments like commercial bills (bill of exchange, treasury bill, commercial papers etc.).
It deals with instruments like shares, debentures, Government bonds, etc.,