What is the major difference between money markets and capital markets?
A) One is more domestic while the other is more international.
B) One includes stock while the other includes loans.
C) The size of the profit or return on the market.
D) The timing of how long the security will be held onto.

Question

Quizplus · Accepted Answer

Money markets involve short-term debt securities and loans while capital markets involve long-term debt and equity securities. The inclusion of stock is not the only difference between the two markets, as money markets also deal with loans and other short-term financial instruments. The profit or return and timing of holding securities may vary within each market, but it is not the defining difference between them. The international/domestic aspect is also not the defining difference.

What Is the Major Difference Between Money Markets and Capital