contestada

(a) What kinds of financial assets are traded in capital markets? (b) How are these different from the financial assets traded in money markets?

Respuesta :

Answer: See explanation

Explanation:

Capital market is a market where securities are being sold such as stocks, bonds etc. The financial assets traded in capital markets are usually bonds, and stocks.

On the other hand, money market refers to the market where short term debt investments are traded. The financial assets traded include promissory notes, treasury bills, commercial papers, certificates of deposit, etc.

Baraq

Considering the financial analysis, the kinds of financial assets traded in capital markets include bonds and stocks.

The stocks are known to be a form of shares in the ownership of a business or company.

On the other hand, bonds are the debt that the issuing entity pledges to repay at an agreed date.

The capital market is different from the financial assets traded in money markets because the Capital market is riskier and of long term assets. In contrast, money markets are less riskier, and they are short-term assets.

Financial assets that are traded in the money market include the following:

  • Treasury bills,
  • Certificates of deposit,
  • Commercial paper,
  • Federal funds,
  • Bills of exchange, etc.

Hence, in this case, it is concluded that the capital market is different from financial assets in many ways.

Learn more about the capital market here: https://brainly.com/question/21863998

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