The financial market is broadly categorized into the money market and the capital market, each serving distinct purposes based on the maturity of the financial instruments traded. The money market deals with short-term borrowing and lending, typically for periods of less than one year. Its primary function is to provide liquidity for businesses and governments to meet their immediate cash needs. Instruments traded here include treasury bills, commercial papers, certificates of deposit, and repurchase agreements. These instruments are highly liquid and generally carry lower risk due to their short maturities. In contrast, the capital market deals with long-term funds, involving instruments with maturities exceeding one year, or even perpetual instruments like stocks. Its main role is to facilitate the raising of long-term capital for investments in productive assets, such as factories, infrastructure, and research and development. Key instruments in the capital market are stocks and bonds. While the money market provides working capital, the capital market fuels long-term economic growth and development. Both markets are interconnected, with conditions in one often influencing the other, and together they form the backbone of a nation's financial system.