BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Capital market is a market which deals in
A
Short-term funds
B
Long-term funds
C
Gilt-edge securities
D
None of these
Explanation: 

Detailed explanation-1: -Capital Market is a market dealing in medium and long-term funds. It is an institutional arrangement for borrowing medium and long-term funds and which provides facilities for marketing and trading of securities.

Detailed explanation-2: -The capital market is dedicated to the sale and purchase of long-term debt and equity instruments. The term “capital markets” refers to the entirety of the stock and bond markets.

Detailed explanation-3: -Capital market trades mostly in long-term securities.

Detailed explanation-4: -A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold.

Detailed explanation-5: -Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market. They help people with ideas become entrepreneurs and help small businesses grow into big companies.

There is 1 question to complete.