Question

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded evry day. These markets together help the savers and investors in directing the available fund into their most productive investment opportunity.
Name the market segment other than the capital market segment in which unsecured and short-term debt instruments are traded. Also, give any three points of difference between the two.

Answer 1

Money market is the market segment where unsecured, short-term debt instruments are traded.
For the three points difference between money and capital market, refer to NCERT Folder question 4 of Short Answer Type Questions.