Financial Institution – Money and Capital Market

Economics SSS 1 Third Term

WEEK 4

Financial Institution – Money and Capital Market

Performance Objectives

Student should be able to:

  1. Explain the meaning of capital and money markets
  2. Identify the benefits of capital and money markets

Content

A money market is a component of the financial market where short-term borrowing can be issued. This market includes assets that deal with short-term borrowing, lending, buying and selling.

On the other hand, a capital market is a component of a financial market that allows long-term trading of debt and equity-backed securities. Long-term borrowing or lending is done by investors or corporations that have large amounts of wealth at their disposal.

Huge financial regulators are responsible for overseeing the capital market to ensure that companies do not defraud their investors. Trading can be done by several credit instruments such.... View More

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