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It is a market for short term financial assets having a maturity period of less than one year.

1. Explain the concept referred above.

2. How does it differ from capital market?

1 Answer

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1. Money market 

2. Difference between capital market and money market

   Capital Market      Money Market
(1) Market deals only long term fund. (1) Market deals only short term fund.
(2) It arranges large amount of fund. (2) It arranges small amount of fund.
(3) Return is high. (3) Return is law.
(4) The instruments used are equity shares, preference shares, debentures and bonds. (4) The instruments used are call money, treasury bills, trade bills, commercial paper and certificate of deposit.
(5) SEBI is the market regulator. (5) RBI is the market regulator.
(6) Capital market instruments are highly risky. (6) Money market instruments are safe.

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