Money markets deal in short-term government and corporate debt, while capital markets deal in long-term corporate and government debt and corporate equity.

Question

Quizplus · Accepted Answer

This is an accurate statement about the difference between money markets and capital markets. Money markets primarily deal with short-term debt instruments, such as Treasury bills and commercial paper, while capital markets deal with long-term debt instruments, such as bonds, and equity securities, such as stocks.

Money Markets Deal in Short-Term Government and Corporate Debt, While