An overview of the financial system - Money market instruments

3 important questions on An overview of the financial system - Money market instruments

What is a money market?

Financial market in which only short-term debt
instruments (< 1 year) are traded.

What is a capital market?

Financial market where securities with longer term debt instruments (>1year) and stocks are traded.

What is the difference between capital and money market?

Money markets have the least price fluctuation and less risky investments than capital markets.

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