Answer to Question #46671 in Macroeconomics for Bertha Tjahikika
Discuss two main differences between the money market and capital market
The main differences between the money market and capital market is that money market intends to serve the sphere of сirculation and capital operates there as a medium of exchange and payment. Capital market serves process of expanded reproduction. Also the money market is used to lend and borrow in short-term finance (money, collateral loans, acceptances), while the capital market is used to lend and borrow in long-term finance (stocks, shares, debentures, bonds).