Money
market
|
Capital
market
|
1. Is a component of the financial markets where short-term borrowing
takes place
|
1. Is a component of financial markets where long-term borrowing
takes place
|
2. Lasts anywhere from 1 hour to 90 days.
|
2. Lasts for more than one year and can also include life-time of a
company.
|
3.. Liquidity adjustment
|
3. Putting capital to work
|
4. Short-term credit required for small investments.
|
4. Long-term credit required to establish business, expand business
or purchase fixed assets.
|
5. Risk is small
|
5. Risk is greater
|