Difference between capital market and money market

Question

Accepted Answer

Capital market deals with long-term securities, while money market deals with short-term securities.

Capital market involves buying and selling of long-term securities such as stocks and bonds.
Money market involves buying and selling of short-term securities such as treasury bills and commercial paper.
Capital market is more suitable for long-term investment goals, while money market is more suitable for short-term cash management.
Capital market is generally more risky but offers higher returns, while money market is considered safer but offers lower returns.

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