Differentiate between Capital Market and Money market on the basis of:

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asked Feb 1, 2018 in Business Studies by Rohit Singh (61,782 points) 35 134 358
Differentiate between Capital Market and Money market on the basis of:
(i) Investment Outlay, (ii) Safety and (iii) Liquidity.

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answered Feb 1, 2018 by sameer (82,980 points) 5 11 37

Difference between Capital Market and Money Market:

Basis Capital Market Money Market
(i) Investment outlay Investment outlay is small Investment outlay is large 
(ii) Safety Capital Market instruments are riskier both with respect to returns and principal repayment  Money market instruments are generally much safer with a minimum risk of default
(iii) Liquidity capital market securities are comparatively less liquid. Money market securities are comparatively more liquid

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