Financial System: The financial system facilitates the transfer of funds from surplus units (households) to deficit units (corporations, governments) for economic development.
Financial Markets: These are mechanisms for creating or transferring financial assets like equities, bonds, currencies, and derivatives at low costs.
Money Market: A market for short-term funds with maturities of one year or less, dealing in instruments like T-bills, commercial papers, and repos.
Capital Market: A market for long-term funds, including stock markets (equity) and bond markets (debt), divided into primary and secondary segments.
Primary Market: Issuers raise fresh capital through IPOs, rights issues, or offers for sale, with direct contact between issuers and investors.
MODELEXAM® 
www.realsoftinfoplan.com