BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Financial Market broadly divided in to two. They are?
A
Money and Capital market
B
Money and Black market
C
Price and Money market
D
Capital and Abroad market
Explanation: 

Detailed explanation-1: -The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The capital market encompasses the trade in both stocks and bonds.

Detailed explanation-2: -These markets are divided into two categories: primary and secondary markets. The best-known capital markets include the stock market and the bond markets.

Detailed explanation-3: -The Financial Market is divided into two broad categories; viz., Capital Market and Money Market.

Detailed explanation-4: -Broadly there are two categories of Indian Financial System, i.e. Indian Money market and Indian capital Market: Indian Money Market – in which short term funds are lent and borrowed. Indian Capital Market – where medium and long term exchanges happen.

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