{"id":267466,"date":"2025-01-13T09:59:29","date_gmt":"2025-01-13T09:59:29","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=267466"},"modified":"2025-01-13T09:59:29","modified_gmt":"2025-01-13T09:59:29","slug":"ney-markets-vs-capital-markets-key-differences-explained","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/ney-markets-vs-capital-markets-key-differences-explained\/","title":{"rendered":"ney Markets vs. Capital Markets: Key Differences Explained"},"content":{"rendered":"

Financial markets are significant to the economy of any country. They provide individuals with a way to invest. Organisations also benefit by availing themselves of these services to improve financial resources. In such cases, money market vs capital market is the general comparison that is made to get to understand these two areas better. Understanding the money market vs capital market is important; however, knowing about their basic features is also important which we will cover in this blog.\u00a0<\/span><\/p>\n

Money Market Definition:\u00a0<\/b><\/h2>\n

There are multiple money market definitions. Let\u2019s look at this two money market definition to understand it better.\u00a0<\/span><\/p>\n

Author Geoffrey Crowther in his book \u201cAn Outline of Money\u201d has stated :<\/span><\/p>\n

\u201cMoney market is a collective name given to the various forms and institutions that deal with the various grades of near money.\u201d<\/span><\/i><\/p>\n

( Source:<\/span><\/i> The strategy watch<\/span><\/i><\/a>)<\/span><\/i><\/p>\n

Another money market definition quoted by Nadler and Shipman, <\/span>“A money market is a mechanical device through which short-term funds are loaned and borrowed through which a large part of the financial transactions of a particular country or world are degraded. A money market is distinct from but supplementary to the commercial banking system.”<\/span><\/i><\/p>\n

(Source:<\/span><\/i> thetreasurenotes<\/span><\/i><\/a>)<\/span><\/i><\/p>\n

Types of Money Market<\/b><\/h2>\n

There are different types of money market instruments, each of them being used to increase the gross domestic product of a nation. It also generates returns with security for those investors who are looking to invest in low-risk propositions with a short tenure.<\/span><\/p>\n

Here is a list of examples of money markets:\u00a0<\/span><\/p>\n