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Question
Distinguish between Capital Market and Money Market.
Solution
| S. No. | Capital Market | Money Market |
| 1. | Investments in the capital market are often made for the long term, which means they entail more risk but also have the potential for bigger returns. | The money market trades short-term debt securities and financial instruments with maturities of one year or less. |
| 2. | The capital market connects investors and borrowers to meet long-term financial demands. | The money market connects lenders and borrowers to meet short-term needs. |
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