Types of Financial Markets: Money Market, Capital Market, and FX Market

The video tutorial provides an overview of financial markets, focusing on the money market, capital market, and foreign exchange market. It explains the types of financial assets traded, their maturity dates, and the purposes these markets serve. The money market deals with short-term finance, offering liquidity and low risk. The capital market caters to medium to long-term finance needs, involving bonds and shares. The foreign exchange market is the largest, facilitating currency trades through spot and forward contracts. The tutorial highlights the importance of understanding risk and reward in these markets.

What are Treasury bills and why are they important?

How does risk and return relate to money market instruments?

In what ways do businesses and governments raise finance in the capital market?

What are the two forms of transactions in the foreign exchange market?