Distinguish between ‘Capital Market’ and ‘Money Market’ on any five basis.

Difference between Capital Market and Money Market:

Basis	Capital Market	Money Market
(i) Participants	The participants are financial institutions, banks, corporates, foreign investors and retail investors.	The participants are RBI, financial institutions, banks, corporates,
(ii) Instruments	Instruments traded are shares, debentures and bonds.	Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill,
(iii) Investment outlay	Investment outlay is small.	Investment outlay is large.
(iv) Duration	It deals in medium term and long term securities.	It deals in short term securities
(v) Liquidity	Capital market securities are comparatively less liquid.	Money market securities are comparatively more liquid.
(vi) Safety	Capital market securities are riskier than money market instruments.	Money market securities are comparatively safer.
(vii) Expected return	Capital market generally yield a higher return than money market instruments.	Money market securities yield comparatively less return.

$\displaystyle 12$ Q. instruments. safer.