Difference between Capital market and Money market

          The capital market should be distinguished from money market. The capital market is the market for long-term funds. On the other hand money market is primarily the market for short-term funds. However, the two markets are closely related as the same institution many a times deals in both types of funds, i.e. short-term as well as long-term.   
      The major points of distinction between the two markets are as under:


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