A capital market differs from the money market...
A capital market differs from the money market in that in the former ________?
The percentage of interest charged is more
Loan sought is long term
Loan repayment is guaranteed
Loan sought is short-term
Correct answer is B
Basically the difference between the capital markets and money markets is that capital markets are for long term investments, companies are selling stocks and bonds in order to borrow money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing.
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