The financial markets are composed of money markets and_? A) Financial institutions B) Capital markets C) Insurance D) None

Financial markets are markets to bring both Buyers and Sellers on one platform. Money markets are for assets (or instruments) short term in nature - generally one year, while Capital markets deal with assets of long term - generally more than a year

Money markets are for parking funds with liquidity being main criteria while Capital markets are for making Investments and risk and return are the major criteria.

Bonds and Stock market are part of Capital market while FD, B/E, CP etc are Money market instruments.

Money markets and Capital markets form financial markets