Economy Simplified

The market in which national currencies are traded for one another is known as the foreign exchange market.

The balance of payments (BoP) records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year. 

Credit Rating Agencies (CRA) assess creditworthiness of organisation and different entities.

SEBI is a statutory regulatory body established on the 12th of April, 1992. It monitors and regulates the Indian capital and securities market.

Equities, Derivatives, Debt Securities (Bonds and Debentures), Mutual Funds and Exchange Traded Funds are financial instruments of Capital Market.

Debt instruments traded on the exchange can be classified into bonds and debentures.

Equity securities indicate ownership in the company whereas debt securities indicate a loan to the company.

Treasury Bill, Commercial Bill (CB), Commercial Papers (CP), Certificate of Deposit, Call money and Repos & Reverse Repos.

Money market includes Treasury bills, Call money, Commercial papers, Commercial bills whereas capital market includes Equity shares, debentures, bonds.

The money market is the trade in short-term debt having a maturity period of one or less than one year.