defferent between optical market and Mony market on basics of
Answers
Answer:
Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital. Capital markets include the equity market and the debt market.
Answer:
Money Market
A random course of financial institutions, bill brokers, money dealers, banks, etc., wherein dealing on short-term financial tools are being settled is referred to as Money Market.
Money markets are informal in nature.
Capital Market
A kind of financial market where the company or government securities are generated and patronised with the intention of establishing long-term finance to coincide with the capital necessary is called Capital Market.
Capital markets are formal in nature
Explanation:
features of Money Market
A few general money market features are:
It is fund-term market funds.
It’s maturity period up to one year.
It trades with assets that can be transformed into cash easily.
All the transactions take place through phone, email, text, etc.
Broker not required for the transaction
The components of a money market are the Commercial Banks, Non-banking financial companies and Central Bank, etc.
Features of Capital Market
Important features of the capital market are:
Unites entrepreneurial borrowers and savers
Deals with long-term investments.
Agents are required.
It is controlled by government rules and regulations.
Deals in both commercial and non-commercial securities.
Foreign Investors.