Distinguish between Money Market and Capital Market on the basis of: (a) Investment outlay (b) Duration (c) Liquidity and (d) Instruments.
Distinguish between Money Market and Capital Market on the basis of:
(a) Investment outlay (b) Duration (c) Liquidity and (d) 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. |
| Investment outlay | Investment outlay is small. | Investment outlay is large. |
| 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. |
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