BANKING AFFAIRS

Detailed explanation-1: -Notes: There are three component of capital market are:-EQUITY MARKET, DEBT MARKET and DERIVATIVE MARKET .

Detailed explanation-2: -The primary function of the capital market is to bring together investors who buy securities with those who sell them. The three main participants of the capital markets are savers (also known as investors), borrowers, and stockholders.

Detailed explanation-3: -The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. RBI is not a part of capital market.

Detailed explanation-4: -A capital market is a financial market in which long-term debt 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 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. The buyers and sellers of these markets are either individuals or institutions.