BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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liquid corporations
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instrumental corporations
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manufacturing corporations
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government and corporations
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Detailed explanation-1: -Suppliers in capital markets are typically banks and investors while those who seek capital are businesses, governments, and individuals. Capital markets are used to sell different financial instruments, including equities and debt securities.
Detailed explanation-2: -Notes: In capital markets, government and corporations are the major suppliers of trading instruments.
Detailed explanation-3: -Answer and Explanation: The correct answer is A) Corporate bonds. Capital markets are divided into two markets, primary and secondary.
Detailed explanation-4: -Derivatives. Derivatives are capital market instruments that derive their value from an underlying asset. The underlying assets can be bonds, stocks, metals, commodities, currency, etc. The trade of these instruments is based more on speculation, however these can also be used for hedging and arbitrage purpose as well.
Detailed explanation-5: -Some examples of capital markets are NASDAQ, BSE, New York Stock Exchange, London Stock Exchange. Also read: Money Market Vs Capital Market.