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Answer to Question #46671 in Macroeconomics for Bertha Tjahikika

Question #46671
Discuss two main differences between the money market and capital market
Expert's answer
The main differences between the money market and capital market is that money market intends to serve the sphere of  —Āirculation 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).

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