In the context of capital markets, government bonds and stocks are classified as instruments that facilitate longer-term financing for entities, thereby falling under capital markets. On the other hand, the call money market, which deals with short-term borrowing and lending of funds typically for a period of one day, and the treasury bill market, which involves short-term government securities, are part of the money market. This distinction is crucial for understanding financial systems and their role in economic development, a key theme in UPSC Prelims GS Paper I.