Money And Capital Markets - SS1 Economics Lesson Note

Money Market:

The money market is a financial market where short-term, low-risk debt securities are traded. The securities traded in the money market include Treasury bills, commercial papers, certificates of deposit, and banker's acceptances. The money market provides a platform for institutions to lend or borrow funds for a short period, usually less than a year.

Capital Market:

The capital market is a financial market where long-term securities such as stocks, bonds, and other financial instruments are traded. It provides an avenue for companies, governments, and other institutions to raise long-term funds for investment purposes. The capital market also provides opportunities for investors to buy and sell securities for long-term investment purposes.