Question on: JAMB Economics - 2018
A capital market differs from the money market in that in the former ________?
A
The percentage of interest charged is more
B
Loan sought is long term
C
Loan repayment is guaranteed
D
Loan sought is short-term
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Correct Option: D
The capital market deals with long-term financial instruments (e.g., stocks and bonds), while the money market deals with short-term instruments. Therefore, the primary difference is the duration of the loans or investments.
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