Money markets represent shortterm lending while capital markets allow investors to trade in stocks and bonds. 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.The document provides information about money markets and capital markets. It defines the money market as dealing in short term loans of up to 365 days. The document discusses money markets and capital markets, explaining that money markets deal in short-term financial instruments of up to one year. The money market refers to trading in very short-term debt investments. The money market involves trading – both lending and borrowing – in short-term debt. It provides an overview of the money market, including definitions, key participants, instruments, and objectives. This problem set covers financial markets and institutions. The topics include the capital allocation process, types of markets, major market instruments,…