Question : Statement 1: Capital market deals with short-term financial instruments.
Statement 2: Capital market deals with long-term financial instruments.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is false, and statement 2 is false.
Solution : The correct answer is (d) Statement 1 is false, and statement 2 is true.
Statement 1 is false. The capital market primarily deals with long-term financial instruments like stocks, bonds, debentures, and other long-term investments. It is not focused on short-term financial instruments.
Statement 2 is true. The capital market is a platform for buying and selling long-term financial instruments, allowing businesses and governments to raise long-term funds for various projects and purposes.
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