Besides differences in maturities, the characteristic that distinguishes financial assets in the capital market from those in the money market is the level of
A) activity.
B) liquidity.
C) velocity.
D) intermediation.

Question

Quizplus · Accepted Answer

The characteristic that distinguishes financial assets in the capital market from those in the money market is the level of liquidity. Money market assets are short-term, highly liquid, and have low risk, while capital market assets are less liquid, have longer maturities, and are riskier. Therefore, liquidity is the main factor that differentiates the two markets.

Besides Differences in Maturities, the Characteristic That Distinguishes Financial Assets