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