ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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commodity markets.
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fund-available markets.
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derivative exchange markets.
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financial markets.
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Detailed explanation-1: -Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called financial markets. A financial market is a broad term describing any marketplace where trading of securities including equities, bonds, currencies, and derivatives occur.
Detailed explanation-2: -Financial markets create securities products that provide a return for those who have excess funds (Investors/lenders) and make these funds available to those who need additional money (borrowers). The stock market is just one type of financial market.
Detailed explanation-3: -Financial markets transfer the money or capital from those who have surplus money to those who are in need of investment.
Detailed explanation-4: -The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The capital market encompasses the trade in both stocks and bonds.
Detailed explanation-5: -Capital market consists of two types i.e. Primary and Secondary.