BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Financial Market
|
|
|
Money Market
|
|
|
Capital Market
|
|
|
Financial institutions
|
Detailed explanation-1: -Capital markets are composed of the suppliers and users of funds.
Detailed explanation-2: -For the most part, money markets provide those with funds-banks, money managers, and retail investors-a means for safe, liquid, short-term investments, and they offer borrowers-banks, broker-dealers, hedge funds, and nonfinancial corporations-access to low-cost funds.
Detailed explanation-3: -Money Market is a financial market where short-term financial assets having liquidity of one year or less are traded on stock exchanges. The securities or trading bills are highly liquid. Also, these facilitate the participant’s short-term borrowing needs through trading bills.
Detailed explanation-4: -In the money market, only short-term liquid financial instruments are exchanged. Whereas, in the capital market, only long term securities are dealt with. Capital Market plays a significant role in the growth of a country’s economy as it provides a platform for mobilising the funds.