Money market is the mechanism through which sthort term funds are
loaned and borrowed. It designates financial instittutions which handle the
purchase, sale and transfer of short term credit instruments. Commercial banks,
acceptance houses, Non Banking Financial Institutions and the Central Bank are
the institutions catering to the requirements of short term funds in the money
Market.
Capital Market is a part of financial system which is concerned
with raising capital by dealing in shares, bonds and other long term
investments.
The market where investment instruments like bonds, equities and
mortgages are traded is known as the capital market
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