Money Market VS. Capital Market

Money Market VS. Capital Market

Features of Money Market

A few general money market features are:

● It is fund-term market funds.
● It’s maturity period up to one year.
● It trades with assets that can be transformed into cash easily.
● All the transactions take place through phone, email, text, etc.
● Broker not required for the transaction
● The components of a money market are the Commercial Banks, Non-banking financial
companies and Central Bank, etc.

Features of Capital Market

Important features of the capital market are:

● Unites entrepreneurial borrowers and savers
● Deals with long-term investments.
● Agents are required.
● It is controlled by government rules and regulations.
● Deals in both commercial and non-commercial securities.
● Foreign Investors.

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