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. Cash equivalents are short-term investments and money market fund investments that are readily converted to cash and provide additional income. With the Fed on hold, yields of tax-exempt money market instruments remained in a relatively tight trading range.