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?
Correct Answer: Option B
A capital market is a financial market where long-term debt or equity-backed securities are bought and sold.
Government Bond Market: Government bonds in India, categorized as Government Securities (G-Sec), are long-term investment tools issued for periods ranging from 5 to 40 years. They are issued by both Central and State governments of India and are part of the capital market.
Stock Market: The stock market is a key component of the capital market, facilitating the trading of shares and other financial products.
Treasury Bills Market: Treasury bills are money market instruments issued by the Government of India.
Call Money Market: The call money market is an essential part of the Indian Money Market, where day-to-day surplus funds (mostly of banks) are traded.
Therefore, Government Bond Market and Stock Market are included in capital markets.
Hence, only two are included in capital markets.