1.

‘Money market is a wholesale market and capital market is a retail market.’ Do you agree with this statement? Give other 5 differences between them.

Answer»

(a) Yes

   Capital Market   Money Market
(1) Market deals only long term fund.(1) Market deals only short term fund.
(2) It arranges large amount of fund.(2) It arranges small amount of fund.
(3) Return is high.(3) Return is high.
(4) The instruments used are equity shares, preference shares, debentures and bonds.(4) The instruments used are call money, treasury bills, trade bills, commercial paper and certificate of deposit
(5) SEBI is the market regulator.(5) SEBI is the market regulator.
(6) Capital market instruments are highly risky.(6) Money market instruments are safe


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