Question

Money market arranges for ____________ and capital market provides for ____________ funds.

• A. long-term, short-term
• B. long-term, short to medium-term
• C. short-term, medium to long-term
• D. medium-term, short to long-term

Answer 1

Answer: (C)

short-term, medium to long-term

The financial market is a platform where investors deal in financial instruments. Money market and capital market are part of the financial market.

In the money market, extremely liquid financial instruments are traded, i.e. monetary instruments of short expiry are dealt with.

On the the other hand, the capital market is for medium to long term finance.