Money and Capital market

 

Differences:

 

1. Maturity of Instruments:

 *Money Market: Focuses on short-term financial instruments with maturities typically less than a year. Examples include Treasury Bills, commercial paper, and certificates of deposit.

*Capital Market: Deals with long-term financial instruments with maturities exceeding a year. Examples include stocks, bonds, and mortgages.

 

2. Instruments Traded:

*Money Market: Primarily trades debt instruments like commercial paper, repurchase agreements (repos), and certificates of deposit. 

*Capital Market:  Deals with a broader range of instruments, including stocks, bonds (both corporate and government), and other securities like mutual funds and derivatives.