ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capital markets make possible to generate foreign capital.
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Capital Markets provide funds for projects in backward areas.
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The existence of a stock exchange enables companies to raise permanent capital.
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Intermediaries include various entities such as MCX-SX, BSE, NSE, other regional stock exchanges.
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Detailed explanation-1: -The main Financial Intermediaries of India include: Stock Exchanges: These include the NSE (National Stock Exchange), BSE (Bombay Stock Exchange), MCX (Multi Commodity Exchange), etc. Banks. Insurance Companies. Pension Funds.
Detailed explanation-2: -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-3: -Explanation:A capital market is a monetary market wherein long-term equity or debt securities are purchased and sold. A capital market is where new issues are made that are bought and sold. The funds are raised for a short period of time is not true in the case of capital markets.
Detailed explanation-4: -3. Investment Banks (“Sell Side”) Acting as an intermediary, investment banks are hired to facilitate deals between corporations and institutions. The job of investment banks is to connect institutional investors with corporionss, based on risk and return expectations, and investment styles.