Question : Which feature of capital market is highlighted in the given statement?
Statement:It is known as increase in the investments in the country.
Option 1: Creating liquidity
Option 2: Capital formation
Option 3: Trade off functions
Option 4: None of the above
Answer (1)
21st Jan, 2024
Correct Answer: Capital formation
Solution : Capital market helps in capital formation. The capital market offers opportunity to the people to invest. Investment brings profit to the people. They again invest in it and this process continues. The increase in the investments in the country is called capital formation.
Hence, option B is correct.
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