Three Mark Questions:- Differentiate between Capital Market and Money market on the basis of (i) Investment Outlay, (ii) Safety and (iii) Liquidity.
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Solution
(i) Investment outlay in Capital market is not huge. The value of units securities is low but in money market huge sums of money is involved as instruments are expensive.
(ii) Safety in money market is more than that of capital markets
(iii) Money market enjoys higher liquidity compared to capital market.