Question 44
Financial InstitutionsA capital market differs from the money market in that in the former
- A.loan sought is short term
- B.loan repayment is guaranteed
- C.loan sought is long term
- D.the percentage of interest charged is more.
Show the answer and explanation
Answer: C (loan sought is long term)
Explanation
The capital market deals in long-term funds; the money market deals in short-term funds.