Economics · Capital Market
How does a capital market primarily differ from a money market?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Capital market deals in medium and long-term funds, while money market deals in short-term financial instruments.✓
- 2Capital market deals strictly with foreign exchange, while money market deals with domestic currency.
- 3Money market is regulated by stock exchanges, while capital market is regulated only by commercial banks.
- 4Money market deals in long-term funds, while capital market deals in short-term funds.
Correct answer
Capital market deals in medium and long-term funds, while money market deals in short-term financial instruments.
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