| 1. Capital market deals with long term finance funds. |
| 2. Capital Market includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term). |
| 3. Long-term funds are raised either by borrowing from certain institutions or by issuing securities. |
A) 1 only
B) 2 only
C) 3 only
D) All of the Above
Correct Answer: D
Solution :
Capital market deals with long-term finance (more than 365 days) funds. It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term). The difference between money market and capital market is not so much in the institutions involved as in their term of borrowing or lending. Long-term funds are raised either by borrowing from certain institutions or by issuing securities.
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