The difference between money and capital market.

Question

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Answer 1

Question

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

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Answer 2

Question

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

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Answer 3

Question

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

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Answer 4

Question

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

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Answer 5

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

Answer 6

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.

Answer 7

Chapter 2, Problem 1RQ

Summary Introduction

To discuss: The difference between money and capital market.

Answer 8

Expert Solution & Answer

Explanation of Solution

The money market comprises of all organizations and procedures that achieve dealings in short-period debt instruments that are distributed by debtors with (usually) great credit ratings. Instances of securities dealt in the money market comprise country U. Treasury bills, bankers’ acceptances, and commercial paper. Note that all of these are instruments of debt.

Equities are not dealt in the money market. The money market is totally an over-the-counter market. In other sense, the capital market delivers for transactions in long-period financial rights (those rights with maturity time ranging more than one year). The capital market comprises both equity and debt securities. Trades in the capital market can take place on prearranged exchanges or over-the-counter.