What are the characteristics of the money market compared to the capital market

The main characteristics of the currency market are:

1. The transaction period is short. The shortest trading period is only half a day, the longest is no more than a year, and most of them are between 3 and 6 months.

2. The purpose of the transaction is to solve the needs of short-term capital turnover.

3. Funds are used to make up for the temporary shortage of working capital. The financial instruments traded have a strong monetary character.

4. The financial instruments used in the trading activities of the currency market are close to the currency because of their short maturity and high liquidity, which are relatively stable and less risky, and can be sold into cash in the market at any time.

The main features of the capital market are:

1. The transaction period is long, at least more than 1 year;

2. The purpose of the transaction is mainly to solve the contradiction between the supply and demand of long-term investment funds;

3. A large amount of capital borrowing to meet the needs of large-scale long-term projects;

4. As a trading tool, the price** has a high yield compared with short-term financial instruments, but the liquidity is poor and the risk is also greater.

The money market refers to the short-term capital market with a financing period of less than one year, which is an important part of the financial market. The financial instruments contained in the money market are mainly short-term credit instruments issued by banks, banks and industrial and commercial enterprises.

The characteristics of the currency market: short maturity, strong liquidity, low risk.

The currency market has the shadow of the state.

The sub-markets of the money market include the interbank market, the commercial paper market, the large negotiable certificates of deposit market, the short-term bond market and the bond repurchase market. The sub-markets of the capital market are the market of value, including the bond market and the market.

Since the money market can be divided into different types of sub-markets, in different sub-markets, there are a variety of different short-term interest rates, and the different nature of the market determines different interest rate levels. The money market is generally not formally organized, and almost all transactions, especially in the secondary market, are conducted through telecommunications. One of the important characteristics of the currency market is the high volume of market transactions, and the huge amount of transactions makes the currency market effectively a wholesale market.

The currency market is non-artificial and competitive, so it is also an open market, and anyone can enter the market to trade. The money market is a market in which financial assets with a maturity of less than one year are traded. The transaction in the currency market has the characteristics of short term, strong liquidity and low risk, and is placed after the cash currency and deposit currency in the level of currency **, which is called quasi-currency, so the market is called the currency market.

In the economic sense, capital refers to the basic factors of production used for production, that is, material resources such as capital, plant, equipment, and materials. These resources are different from currencies and take a certain amount of time to realize, so the capital market refers to the market for medium and long-term capital lending and financing activities. The medium- and long-term trading period mentioned here is at least one year or more, and some transactions are as long as several decades, or even indefinite.

For example, the duration of closed ** is generally 15 to 30 years. The capital market, also known as the long-term capital market, is an important part of the financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market that conducts medium- and long-term capital or asset lending and financing activities for more than one year.

Because in long-term financial activities, it involves a long term of funds, high risks, and long-term stable income, similar to capital investment, so it is called the capital market.

Both the capital market and the money market are places where the supply and demand of funds are traded, and they are reservoirs and diversion stations for gathering and distributing funds in the economic system. But there is a clear division of labor between the two. Demanders of funds raise long-term funds through the capital market and short-term funds through the money market, and the national economic sector uses these two markets to broaden financial and economic activities.

Historically, the money market preceded the capital market, which is the foundation of the capital market. But the risks in the capital markets are much greater than in the money markets. The main reason is that in the medium and long term, the uncertainty affecting the use of funds increases, the uncertainties increase, and there are many factors affecting the level of the capital market.

The capital market and the money market, collectively referred to as the financial market, are an important part of China's socialist market economy, which has been highly valued by the first and has developed rapidly, and has begun to take shape. Practice since the beginning of reform and opening up has proved that the establishment and development of the financial market is of great significance to optimizing the allocation of resources, invigorating financial integration, improving the efficiency of the use of funds, raising construction funds, and establishing a modern enterprise system.

Answer]: a, c, e

The characteristics of the currency market are: low risk and low return; Short term, fluidity, vertical bends; The trading volume is simply large.

Answer: C

The money market is a special stupid group of points including:1Low risk and low income; 2.short maturity and high liquidity; 3.The trading volume is large and the transaction is frequent.

Answer]: a, b, c

Compared with the money market, the main characteristics of the capital market include: long maturity and poor liquidity. Most of the funds raised in the capital market are used to meet medium and long-term financing needs, so the liquidity and liquidity are relatively weak.

High risk and high return. Due to the long financing period and the possibility of major changes, the market is easy to dissipate fluctuations, and the range of changes is large, and investors need to bear greater risks. At the same time, as a reward for risk, the return is also higher.

Bridges D and E describe the characteristics of the money market.

The money market and the capital market are the two main 1120 markets, and they share some of the same features and functions. Here are some similarities between the money market and the capital market:

1.Key number of capital flows: The money market and capital market are both 1120 markets, providing a platform for capital flow. They provide investors and borrowers with opportunities for financing and investment.

2.Venture capital: Both the money market and the capital market involve investments in risky assets.

In the money market, investors buy short-term, highly liquid bonds and short-term 1120 products. In capital markets, investors buy long-term, riskier bonds, bonds, and other derivatives.

3.Discovery: Both the money market and the capital market provide a mechanism for discovery. Investors trade in the market to determine the ** of an asset through supply and demand. The ** in these markets reflects market participants' perceptions of asset value and risk.

4.Funding the economy: Both the money market and the capital market fund the economy. The money market meets the short-term liquidity needs of businesses and ** by providing short-term financing. The capital market provides long-term financing for the expansion and investment of enterprises.

Although money markets and capital markets share similarities, they also have different features and functions. The money market is mainly concerned with short-term financing and short-term debt instruments, while the capital market is mainly concerned with long-term investments and venture capital. Zheng Liangqi <>