BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The Capital Market of Indian financial system deals with which of the following funds?
A
Hedge funds
B
Short-term funds
C
Long-term Funds
D
Government Funds
Explanation: 

Detailed explanation-1: -The capital market deals in medium-and long-term securities such as equity shares and debentures.

Detailed explanation-2: -The Capital Market is a marketplace that acts as the meeting point for the suppliers and the interested parties in savings and investments. Suppliers referred to here are the parties that are willing to invest their capital or lend it to parties in need of such loans. These suppliers include banks and investors.

Detailed explanation-3: -The money market and the capital market are the two different types of financial markets wherein the money market is used for short-term borrowing and lending. In contrast, the capital market is used for long-term assets, i.e., assets which have a maturity of more than one year.

Detailed explanation-4: -The term capital market includes the stock market, bond market, and related markets.

Detailed explanation-5: -Understanding Capital Markets These venues may include the stock market, the bond market, and the currency and foreign exchange (forex) markets. Most markets are concentrated in major financial centers such as New York, London, Singapore, and Hong Kong.

There is 1 question to complete.