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:
- Explain the meaning of capital and money markets
- 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…