[Solved] What is the primary function of the capital market? — Ans: To provide a platform for issuing and trading long-term securities | Financial Awareness

Financial Awareness - Risk, Stability & Emerging Finance

What is the primary function of the capital market?

ATo provide a platform for issuing and trading long-term securities

BTo facilitate trading of short-term securities like treasury bills

CTo regulate foreign exchange transactions

DTo manage government budget and expenditure

Step-by-Step Solution

Step 1: Identify the concept
The question tests the basic understanding of the capital market's primary function.
Step 2: Apply the concept
The capital market is known for dealing with long-term securities such as shares and bonds. Short-term securities belong to the money market, foreign exchange transactions are handled by forex markets, and government budget management is unrelated.
Final Answer:
To provide a platform for issuing and trading long-term securities → Option A
Quick Check:
Capital market function = platform for long-term securities ✅

Quick Trick: Remember: Money Market = short-term; Capital Market = long-term securities.

Common Mistakes:

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