1) Money market and Capital market.
Basic for comparison
A segment of the financial market where lending and borrowing of short term securities are done.
A section of the financial market where long term securities are issued and traded.
Nature of Market
Money markets are informal in nature
Capital markets are formal in nature
Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit, etc.
Shares, Debentures, Bonds, Retained Earnings, Asset Securitization, Euro Issues, etc.
Money markets have a low risk
Capital markets have more risk as compared to money markets
Return on Investment
ROI is usually low in money market
ROI is comparatively high in the capital market
Money markets are highly liquid
Capital markets are comparatively less liquid
2) Demand deposit and Time deposit.
Basic for comparison
There is no fixed time period involved in the case of a demand deposit.
Time deposits are deposited in the bank for a fixed period of time (usually 1 year to 5 years)
Saving accounts and current accounts are examples of demand deposits.
Fixed or term deposit is an example of time deposits
Rate of Interest
In the case of saving and current accounts it is lower (which is around 4 to 6 percent).
The rate of interest offered by the banks on time deposit is higher around 7 to 9 percent
In case of demand deposits, one needs all facilities like ATM, credit card, the online banking as these accounts are meant for withdrawal of funds as and when required by the account holder.
In case of time deposit, one does not need facilities like ATM, credit card, online banking as funds are tied for a specific period
3) Organized sector and Unorganized sector of money market.
In the organized market, the employment terms are fixed and regular.
In the unorganized market, the workers are paid on a daily basis.
The workers in the organized market get assured work and some basic facilities.
The workers in the unorganized market do not get assured work and no basic facilities such as medical policies are not provided to them.
The organized market is the one that is combined with the relevant administration or government and comprehends its rules and regulation.
The unorganized market is not associated with the government and therefore, no rules are expected to be followed.