gs1medium

Consider the following markets:

  1. 1.Government Bond Market
  2. 2.Call Money Market
  3. 3.Treasury Bill Market
  4. 4.Stock Market. How many of the above are included in capital markets?
  1. A.Only one
  2. B.Only two
  3. C.Only three
  4. D.All four
▶ Answer & Explanation

Correct answer: B. Only two

Capital markets are where long-term debt and equity securities are traded. The government bond market deals with longer-term government debt. The stock market involves trading ownership shares of companies. While Treasury bills are government debt, they are short-term instruments. The call money market is a segment of the money market, dealing with very short-term interbank lending.

Source: UPSC gs1 2023

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