Differentiate between 'Capital Market' and 'Money Market, on the following basis: (i) Expected Return (ii) Security
Differentiate between 'Capital Market' and 'Money Market, on the following basis:
(i) Expected Return
(ii) Security
(iii) Liquidity
(iv) Duration and
(v) Instruments
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| Basis | Capital Market | Money Market |
| Instruments | Instruments traded are shares, debentures and bonds. | Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill. |
| Duration | It deals in medium term and long term securities | It deals in short term securities |
| Liquidity | Capital market securities are comparatively less liquid. | Money market securities are comparatively more liquid. |
| Expected return | The investment in capital markets generally yields a higher return | The expected rate of return of the money market is less. |
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