Exercises · Q9
Q.Distinguish between the capital market and the money market.
Puducherry TnboardTextbookSubjectiveImportance★★★★★
32% · 9/28 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →| Basis | Capital Market | Money Market |
|---|---|---|
| Maturity period | Long-term — generally more than one year | Short-term — generally up to one year |
| Instruments | Equity shares, preference shares, debentures/bonds, government securities | Treasury bills, commercial paper, call money, certificates of deposit |
| Purpose | Fixed capital and long-term working-capital needs | Short-term working-capital and temporary liquidity needs |
| Participants | Companies, governments, individual/institutional investors, stock exchanges | Commercial banks, RBI, financial institutions, large corporates |
| Liquidity | Lower for any single instrument, though the market as a whole provides liquidity | Very high — instruments are designed for quick conversion to cash |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.