Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. The document is a paper submitted for a course on financial institutions and markets.The money market involves trading – both lending and borrowing – in short-term debt. A marketer including all institutions, organisations, and instruments providing medium and longterm funds is known as a Capital Market. This document provides an overview of money and capital markets, outlining their key functions and instruments. Assignment Money Markets - Free download as Word Doc (.