Rahul, the Managing Director of 'HariHar Ltd. and Sahil, the finance manager were discussing about avenues of investing the idle funds of the company. Rahul was of the opinion that money should be invested in the capital market whereas Sahil felt that it would be better if the investment was made in the money market. Explain with the help of any two points, giving reasons, why Sahil felt that investment in the money market is better.

Investment in money market is better due to the following reasons $\displaystyle 1$) Liquidity: Money market instruments enjoy a higher degree of liquidity as the Discount Finance House of India (DFHI)has been established for providing a ready market, but in capital market a share may not easily find a buyer. $\displaystyle 2$) Safety: Money market is generally much safer with a minimum risk of default whereas capital market instruments are riskier both with respect to returns and principal repayment. $\displaystyle 3$) Duration: Money market instruments have a tenure of single day to one year whereas capital market instruments deals in medium and long-term securities. B