ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The money market is part of the fixed-income market that specializes in short-term debt securities that mature in less than one year.

Detailed explanation-2: -The money market is where short-term financial instruments with a holding period of a year or less are traded.

Detailed explanation-3: -Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers.

Detailed explanation-4: -Capital Market: A capital market is a financial market in which long-term (over a year) instruments (i.e debt) or equity-backed securities are bought and sold.

Detailed explanation-5: -T-bills: These securities have the shortest time to maturity with lengths ranging from four weeks to one year. T-bills are sold at a discount to the face value of the bond, so investors earn the difference at maturity.