Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. The document discusses money markets and capital markets, explaining that money markets deal in short-term financial instruments of up to one year.CMR serves as a benchmark for monetary policy operations. Eg- if the interest rate is high, RBI will buy securities. ENTR 343- Assignment 5 Chapter 11 1. What characteristics define the money markets? 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. London financial markets were better integrated with the real economy in Middlesex than in Yorkshire.