The money market is where short-term debt and lending takes place; the capital market is designed for long-term assets, such as stocks and bonds. This document is an assignment on the money market, its key components, and the current state of the money market in India.This document provides an overview of money and capital markets, outlining their key functions and instruments. Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. A money market refers to a market that allows for the exchange of securities. This market focuses on the supply and demand of money instead of products. How does the location of money markets differ from that of capital markets? In the capital market, long-term financial instruments are traded, while in the money market, short-term financial instruments are traded.