1
Question
What is the major difference between money markets and capital markets?
What is the major difference between money markets and capital markets?
Open in App
Solution
Comparison Level
Money Market
Capital market
Duration
Less than one year/ short term
More than one year/ long term
Risk level
Low level of risk
High level of risk
Liquidity
High
Low
Volatility
Low level of Volatility
High level of volatility
Objective of investment
To maintain the wealth
To create wealth
Examples
Commercial papers, Treasury Bills
Bonds, stocks, and shares
Also see:
Stay tuned to BYJU’S to learn similar Commerce Questions.
| Comparison Level | Money Market | Capital market |
| Duration | Less than one year/ short term | More than one year/ long term |
| Risk level | Low level of risk | High level of risk |
| Liquidity | High | Low |
| Volatility | Low level of Volatility | High level of volatility |
| Objective of investment | To maintain the wealth | To create wealth |
| Examples | Commercial papers, Treasury Bills | Bonds, stocks, and shares |
Also see:
Stay tuned to BYJU’S to learn similar Commerce Questions.
Suggest Corrections
0
Similar questions
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
