gs1medium
Consider the following markets:
- 1.Government Bond Market
- 2.Call Money Market
- 3.Treasury Bill Market
- 4.Stock Market. How many of the above are included in capital markets?
- A.Only one
- B.Only two
- C.Only three
- 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