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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