30.common feature shared by both capital market and money market? A. Short-term instruments B. Focus on long-term financing C. Involvement of only government securities D. Limited liquidity
Question
30.common feature shared by both capital market and money market? A. Short-term instruments B. Focus on long-term financing C. Involvement of only government securities D. Limited liquidity
Solution
The common feature shared by both capital market and money market is B. Focus on long-term financing. Both markets are platforms where buyers and sellers engage in trade of financial securities. The capital market is focused on long-term financing such as bonds and stocks. The money market, on the other hand, is focused on short-term financing, but it can also contribute to long-term financing through mechanisms like term deposits and treasury bills. Therefore, the focus on long-term financing is a common feature of both markets.
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