What are the two main types of financial markets?

The two main types of financial markets are Capital Markets and Money Market. The capital market is the market for medium and long term funds. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

Money Market maintains the balance between the demand and supply for money when it comes to short-term money-related transactions(monetary equilibrium). 

Further readings:

  1. Capital Markets – Types, Examples, Features, Structure, Functions, and Advantages
  2. Demand and Supply – Concepts of Economy for UPSC

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