Question 22 of 28
Q.Capital market is a market for :
(a) Long term finance
(b) Short term finance
(c) Both Short term and Medium term finance
(d) Medium term finance
Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2024MCQ· 1mImportance★★★★★
79% · 22/28 Questions
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Start your 14-day free trial to unlock the full solution →The capital market is the market for long-term finance (funds with a maturity of more than one year), so the correct option is (a) Long term finance.
In the Tamil Nadu HSC Commerce syllabus, the financial market is split by the maturity of the funds it deals in:
- Money market handles short-term funds — instruments maturing within one year (treasury bills, commercial paper, call money).
- Capital market handles long-term funds — instruments with a maturity of more than one year, such as equity shares, preference shares, debentures and bonds. …
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