Economics · Financial Markets
What is the fundamental difference between the Money Market and the Capital Market?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1There is no functional difference between the two markets
- 2Money market regulates commercial banks, whereas capital market regulates the central bank
- 3Money market deals with short-term funds, whereas capital market deals with long-term funds✓
- 4Capital market deals with short-term funds, whereas money market deals with long-term funds
Correct answer
Money market deals with short-term funds, whereas capital market deals with long-term funds
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