BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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shorter term markets
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capital markets
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counter markets
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long-term markets
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Detailed explanation-1: -Money market where debt and stocks are traded and maturity period is more than a year is classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.
Detailed explanation-2: -Capital Market: A capital market is a financial market in which long-term (over a year) instruments (i.e debt) or equity-backed securities are bought and sold.
Detailed explanation-3: -Capital market is referred to as a market where trading of financial securities like stocks, bonds, etc takes place between buyer and seller of those securities.
Detailed explanation-4: -Instruments: Bills of Exchange or Commercial Bills, Treasury Bills (T-Bills), Commercial Papers (CP), Certificates of Deposits (CD), Repurchase Agreements, Banker’s Acceptance, and Call & Notice Money are examples of money market instruments. Bonds and stocks are examples of capital market instruments.