Final answer:
The international money market concentrates on short-term lending, which lasts for one year or less, typically through money market funds, small CDs, and money market mutual funds.
Step-by-step explanation:
The international money market primarily focuses on short-term lending, which is any financing arrangement that lasts for one year or less. This involves providing investors with avenues to loan money on a short-term basis, often through instruments such as money market funds, small certificates of deposit (CDs), and money market mutual funds. These financial tools are designed to be low-risk and highly liquid, making them attractive to both domestic and foreign investors looking for a safe place to park their funds temporarily.
Capital markets, on the other hand, deal with medium to long-term lending and involve different financial instruments such as corporate bonds, government bonds, and long-term CDs. In the context of international markets, the situation can become complex as foreign investors might withdraw money from various investment vehicles, including stocks, bonds, and real estate, due to concerns about repayment.