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?

examrobotsa's picture
Q: 45 (IAS/2023)
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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,11,15,2,11,7,6

The capital market is where long-term securities like stocks and bonds are bought and sold. Looking at the options,

1. Government Bond Market: These are longer-term markets where government issues bonds to raise funds, so it is included in the Capital Markets.

2. Call Money Market: It`s a market for extremely short-term, day-to-day lending. As it deals with short-term funds, it is not a part of Capital Markets.

3. Treasury Bill Market: Treasury bills are short-term securities issued by the government. Like call money markets, these are not part of Capital Markets.

4. Stock Market: Stocks represent ownership in companies and are long-term securities, so they fall under the Capital Markets.

So, only the Government Bond Market and Stock Market are part of the Capital Market.

Therefore, the correct option is 2 - Only two, (Government Bond Market and Stock Market are included in the capital market).