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Q25·GS Paper 1 · Prelims 2023

Capital markets — Government Bond Market, Call Money Market, Treasury Bill Market, Stock Market

EconomyFinancial Markets & InstrumentsHow-many countingMediumStatic

Question

Consider the following markets: How many of the above are included in capital markets?

  1. 1.

    Government Bond Market

  2. 2.

    Call Money Market

  3. 3.

    Treasury Bill Market

  4. 4.

    Stock Market

Options

a

Only one

b

Only two

Answer
c

Only three

d

All four

Explanation

The Government Bond Market and the Stock Market deal in long-term debt and equity, making them parts of the Capital Market. The Call Money Market (overnight borrowing) and the Treasury Bill Market (short-term government debt under 364 days) strictly belong to the Money Market.

Capital markets = long term (>1 year); Money markets = short term (<1 year).

Answer: (b).

Question details

Year

2023

Paper

GS Paper 1

Question

Q25

Subject

Economy

Sub-topic

Financial Markets & Instruments

Type

How-many counting

Difficulty

Medium

Nature

Static

Source hint

NCERT Economy Cl.12 Ch.3 / Indian Capital Markets

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