Answer to Question #299901 in Finance for moha

Question

In respect to financial management compare and contrast money and capital markets.

Answer 1

Similarities

Both are crucial elements of the worldwide financial market. Investors can buy debt securities on both markets. Governments and businesses rely on both the stock and bond markets to fund their operations.

Differences

A money market is a type of financial market that allows for the issuance of short-term loans. Assets that deal with short-term borrowing, lending, purchasing, and selling are included in this market. A capital market is a part of a financial market that allows for the long-term dealing of debt and equity-backed assets.