Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. CMR serves as a benchmark for monetary policy operations.Eg- if the interest rate is high, RBI will buy securities. The document discusses money markets and capital markets, explaining that money markets deal in short-term financial instruments of up to one year. It provides an overview of the money market, including definitions, key participants, instruments, and objectives. The money market refers to trading in very short-term debt investments. Money markets deal in short-term financial instruments of less than one year, while capital markets provide long-term financing. The money market deals in securities of shortterm with a maximum tenure of one year. The capital market deals in securities of medium and long term. The money market is an organized exchange market where participants can lend and borrow short-term, high-quality debt securities.