ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The money market is where short-term financial instruments with a holding period of a year or less are traded. It essentially works as a short-term lending and borrowing platform for its participants, with investors in this market either gaining access to funds or earning interest on them.

Detailed explanation-2: -Capital Market. The capital market is the market for medium and long term funds. It consists of all the financial institutions, organizations, and instruments which deal with lending and borrowing transactions of over one-year maturity.

Detailed explanation-3: -Capital Market Lending Business The product includes a portfolio of loan against mutual funds, loan against shares, loan against securities and loan against bonds. Loans may be business loans, or loans to meet short term working capital requirements or personal obligations.

Detailed explanation-4: -Explanation: The money market fundamentally is concerned with a segment of the financial market where financial instruments with high liquidity and transient developments are exchanged.

Detailed explanation-5: -The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell equities (stocks), debt securities.