Question

Difference between money market and capital market 2

Answer 1

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 the direct or indirect impact on the capital.

Answer 2

(1.) MONEY MARKET

1. It is the market in which transactions will made on cash basis not on capital basis.

2. In this market all transactions like paying, borrowing, lending, etc, are all done by cash.

(2.) CAPITAL MARKET

1. It is the market in which transactions will made or done one capital basis(which means money made by business) .

2. In this market, transactions done for business activities.