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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 


 


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 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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