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Which of the following best describes the capital market?

easy Q3 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which of the following best describes the capital market?
AMarket for short-term funds
BMarket for foreign exchange
CMarket for long-term funds
DMarket for agricultural commodities
Step-by-Step Solution
  1. Step 1: Understand capital market definition

    Capital market is a market where long-term funds are raised through instruments like equity shares and bonds.
  2. Step 2: Analyze options

    Short-term funds are traded in money markets. Foreign exchange and agricultural commodities are separate markets.
  3. Final Answer:

    Market for long-term funds → Option C
  4. Quick Check:

    Capital market = market for long-term funds ✅
Quick Trick: Capital market = long-term funds, Money market = short-term funds.
Common Mistakes:
  • Mixing money market with capital market.
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