Differentiate between Capital Market and Money market on the basis of:
Differentiate between Capital Market and Money market on the basis of:
(i) Investment Outlay, (ii) Safety and (iii) Liquidity.
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Difference between Capital Market and Money Market:
| Basis | Capital Market | Money Market |
| (i) Investment outlay | Investment outlay is small | Investment outlay is large |
| (ii) Safety | Capital Market instruments are riskier both with respect to returns and principal repayment | Money market instruments are generally much safer with a minimum risk of default |
| (iii) Liquidity | capital market securities are comparatively less liquid. | Money market securities are comparatively more liquid |
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