|
Particulars |
Money Market |
Capital Market |
|
1. Definition |
Market where transactions
of money and financial assets are accomplished for short time |
Market where transactions
of money and financial assets are occurred for
a long period |
|
2. Basic Role |
Liquidity adjustment |
Putting long-term
capital to work |
|
3. Lending & borrowing |
Short-term (less or equal to 1 year) |
Long-term (more than 1 year) |
|
4. Credit Instruments |
Call money, collateral loans, acceptances, bills
of exchange |
Capital market are stocks, shares, debentures, bonds, |
|
5. Risk |
Due to short-term period, the risk is small |
Risk is more due to long-term period |
|
6. Market regulation |
Commercial banks are closely regulated |
The institutions are not much regulated |