Question

Differentiate between money market and capital market.​

Answer 1

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The money market is the trade in short-term debt. ... The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors

Answer 2

Answer:

The money market and the capital market are not single institutions but two broad components of the global financial system.

The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year.

The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors