Time value of money & Money Market Vs Capital Market

In this video, we explore two fundamental concepts in finance: the Time Value of Money (TVM) and the differences between Money Markets and Capital Markets.
Time Value of Money (TVM):
The Time Value of Money is a financial principle that suggests that a dollar today is worth more than a dollar in the future. This concept is crucial for understanding investment decisions, loans, and savings. We will break down the reasons behind this principle, including inflation, opportunity cost, and the ability to earn interest on money over time.
Money Market vs. Capital Market:
We will also discuss the key differences between Money Markets and Capital Markets.
Money Markets: These markets deal with short-term borrowing and lending, typically involving financial instruments with maturities of one year or less. Common instruments include Treasury bills, commercial paper, and certificates of deposit. Money Markets are known for their high liquidity and low risk.
Capital Markets: In contrast, Capital Markets focus on long-term funding through the issuance of stocks and bonds. These markets support the growth of businesses and economies by providing capital for expansion and innovation. We will discuss the characteristics of Capital Markets, including their potential for higher returns and associated risks.
Join us as we delve into these essential financial concepts, providing you with a deeper understanding of how they influence personal finance and investment strategies. Don't forget to like, share, and subscribe for more insightful content on finance!