The money market where debt and stocks are traded and maturity period is more than a year is known as
- Long-term market
- Counter market
- Capital market
- Shorter term market
Answer: c. Capital market
Answer Explanation
The correct answer is (c). Capital markets trade debt and stocks, and the maturity period of the securities is more than a year.
In the financial system, the capital market plays a key role, as it enables businesses and governments to raise capital to finance their operations and projects. Stocks, bonds, and other long-term financial instruments are bought and sold there. On the other hand, investors use the capital market to invest their surplus funds in long-term assets, aiming to gain returns and grow over time.
Why the other options are not correct
a. Long-term market:
This option is incorrect because the term “long-term market” is not a standard financial market terminology. In the capital market, both short- and long-term securities are traded, making it the correct market where long-term debt and stocks are traded.
b. Counter market:
In finance, the term “counter market” does not describe a market where debt and stocks with a maturity period over a year are traded. There is no widely recognized market with this name.
d. Shorter term market:
This option is incorrect because the term “shorter term market” is not a standard financial term. Money market securities are usually debt securities with a maturity period of one year or less, and they are traded on the money market, which is usually referred to as the money market.
Conclusion
In conclusion, the capital market is the money market where debt and stocks are traded with a maturity period of more than a year. Investors seeking long-term investment opportunities, as well as companies and governments, need to raise long-term capital. A long-term market, a counter market, or a shorter-term market are not correct terms since they are not standard terms for the financial markets.
In order to make informed decisions about investments and financing strategies, investors and businesses must understand the differences between different financial markets.
Which of the following is a global stock market index?
I am Bibisha Shiwakoti a final year BBS student from Janapremi College. I have completed my higher secondary education at Kalinchowk Secondary School.
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