Question : Which of the following statement is correct?
Statement 1: Capital market refers to that market where transaction in long term securities are made.
Statement 2: Money market refers to that market where transaction in short term securities are made.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are true
Solution : Capital market refers to that market where transaction in long term securities are made.Money market refers to that market where transaction in short term securities are made. Period of maturity is more than one year in the capital market. Period of majority ranges from one day to one year in the money market.
Hence, option A is correct.
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