Difference Between Capital Market And Money Market | Banking Awareness | SBI Clerk 2018
|Basis||Capital Market||Money Market|
|Meaning||It provides finance/money for long term investment.||It provides finance/money for short term investment.|
|Function||Mobilisation of resources and effective utilization of resources through lending are its main function.||Lending and borrowing are its principal functions to facilitate adjustment of liquidity position.|
|It includes||It includes stockbrokers, mutual funds, underwriters etc.||It includes Financial institutions, financial companies, chit funds etc.|
|Maturity Period||The instruments traded on capital market have a longer time frame.||The instruments traded on money market have a maximum time frame of 1 year or less.|
|Risk Factor||The risk factor in trading with capital market instruments is high because of longer time duration.||The risk factor in trading with money market instruments is low because of shorter time duration.|
|Returns||The returns expected are very high||The returns expected are less.|
|It provides funds to|
|Regulator||Securities Exchange Board of India (SEBI)||Reserve Bank of India (RBI)|
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