Question

What are money markets? How are they different from capital markets?

Answer 1

A money market is a component of financial market that deals with the buying and selling or lending and borrowing of short term assets which have a duration of one year or less whereas a capital market is a component of financial market that deals with the buying and selling or lending and borrowing of long term assets like debt and equity backed securities of business concerns which have a duration of more than one year.