Consider the following markets:Government Bond MarketCall Money MarketTreasury Bill MarketStock Mark

Question

Consider the following markets:Government Bond MarketCall Money MarketTreasury Bill MarketStock MarketHow many of the above are included in capital markets?

Accepted Answer

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold. It includes:Government Bonds - In India, fall under the broad category of government securities (G-Sec) and are primarily long term investment tools issued for periods ranging from 5 to 40 years. It can be issued by both Central and State governments of India.Capital market refers to a broad spectrum of tradeable assets that includes the stock market as well as other venues for trading different financial products.Treasury bills are money market instruments issued by the Government of India.Call money market is an essential part of the Indian Money Market, where the day-to-day surplus funds (mostly of banks) are traded.