ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the organisations, institutions that provide long term funds
A
Capital market
B
Money Market
C
Primary Market
D
Secondary Market
Explanation: 

Detailed explanation-1: -Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period. Was this answer helpful?

Detailed explanation-2: -obtained are termed as sources of long-term finance. Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long-term finances for companies. securities market.

Detailed explanation-3: -The capital market is geared toward long-term investing. Companies issue stocks and bonds to raise money to grow their businesses. Investors buy them to share in that growth. The money market is less risky than the capital market while the capital market is potentially more rewarding.

Detailed explanation-4: -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-5: -Institutions consist of fund managers, institutional investors, and retail investors. These investment managers provide capital to corporations that need the money to grow and operate their businesses.

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