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DIFFERENCE BETWEEN MONEY MARKET AND CAPITAL MARKET - Coggle Diagram
DIFFERENCE BETWEEN MONEY MARKET AND CAPITAL MARKET
CAPITAL MARKET
Volume of Transaction
Low
Default risks
Higher
Secondary Market
Rather weak when price volatility is considered
Importance of different financial institutions
Widevariety of Financial Institutions
Purpose
Serve as link between surplus and deficit units
Volume of Financial Instruments
High
MONEY MARKET
Secondary Market
Very strong
Volume of Transaction
High
Default risks
Lower
Purpose
Able to rapidly adjust liquidity position
Importance of different financial institutions
CentralBank & Commercial Bank
Volumeof Financial Instruments
Low