ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The organisations/institutions that provide long term funds.
A
Capital market
B
Money market
C
Primary market
D
Secondary market
Explanation: 

Detailed explanation-1: -Solution. The capital market consists of all organizations, institutions and instruments that provide long term funds.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -(a) Money market: which provides short term debt financing and investment. (b) Capital Market: which facilitates comprises of stock markets and bond markets.

Detailed explanation-5: -Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

There is 1 question to complete.