Question
Consider the following markets:
1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
How many of the above are included in capital markets?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer:
B
To suggest corrections, send feedback using feedback button in top menu.
To suggest corrections, use feedback icon on top menu.
Explanation:
Government Bond Market: This market involves the buying and selling of government-issued bonds, which are long-term debt securities. Government bonds are typically considered part of the capital market as they represent long-term investments.
Stock Market: The stock market is a market where shares of publicly traded companies are bought and sold. It is a primary component of the capital market as it facilitates the buying and selling of equity securities.
The Call Money Market and Treasury Bill Market, mentioned in options 2 and 3, respectively, are part of the money market rather than the capital market. The money market deals with short-term borrowing and lending of funds, while the capital market focuses on long-term investment instruments.