What is Money market & Capital Market?

Answer Posted / shobhit gupta

The money market refers to short-term debt instruments . ,
short-term means maturity periods of one year or less.
Notice that equity instruments, either common or preferred,
are not traded in the money market.
The capital market refers to in long-term financial
instruments. Long-term here means having maturity periods
that extend beyond one year. In the broad sense, this
encompasses term loans and financial leases, corporate
equities, and bonds. The funds that comprise the firm's
capital structure are raised in the capital market

Is This Answer Correct ?    15 Yes 2 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are different types of 'non-tax receipts.'?

605


Does leasing release the firm from bad investment?

559


What is the role of banks in developing the economy?

663


What is the source of income of government?

641


What are the rules and regulations of RRBs?

639






What do you know about Deflation?

647


Please tell something about ex-president APJ Kalam. Why he was so popular?

665


What is the monetary policy of RBI and what are the various instruments used to control it?

584


What is Plastic currency?

715


I HAVE TO APPEAR IN A INTERVIEW FOR THE POST OF SENIOR ASSISTANT-FINANCE , PLEASE SUGGEST ME WHAT TYPE OF QUESTIONS THEY SHOULD ASK ME .

1919


Share your views on women entrepreneurship?

624


How to reporton accounting procedures of any organization and what is the role of Indian GAAP in accounting procedures.

1534


How many types of organizations we can establish in India?

608


What is the difference between acquisitions and mergers?

568


Which is better for investment- fixed deposits or mutual funds and why?

617