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.
Question : Which of the following statement is correct? Statement 1: In the capital market transactions are made in the short term securities Statement 2: It is the nature of the capital market to established balance between the supply and the demand side.
Question : Statement 1: Capital market deals with short-term financial instruments.
Statement 2: Capital market deals with long-term financial instruments.
Question : Statement 1: Money market deals with short-term debt instruments.
Statement 2: Money market deals with long-term bonds and shares.
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