Discuss what market whether you would go to the Money or Capital Markets to raise funds for construction of a factory. Explain why. Discuss which market and the sort of instruments you should use to manage corporate treasury funds.

I will be going to capital market in order to raise funds for construction of the factory as,construction of a factory is a long-term process and it is not a short-term process so I will be raising long-term capital and it can only be raised through the capital markets because money markets are only offering with capital for the shorter period of time and hence I will be adopting up with the matching concept and I will be fulfilling my need of long-term fulfillment of capital through capital market.

I will try to raise capital through equity market or debt market in order to have long-term funding from the capital market to fund for construction of the factory.

I will be using with the bond Markets and I will be helping myself to use with equity raising also from the longer term perspective, in order to fund for the capital requirement because it will help me in order to have a better repayment structure and I will be able to pay it off with the long-term realisations of the factory.