Consider the following;
1. Equity shares
2. Debentures
3. Certificates of deposits
4. Bonds
5. Treasury Bills

Which of the above instruments are part of the capital market?
(a) 1, 2, 3 and 5 only
(b) 1, 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4 only

Question

Consider the following;
1. Equity shares
2. Debentures
3. Certificates of deposits
4. Bonds
5. Treasury Bills

Which of the above instruments are part of the capital market?
(a) 1, 2, 3 and 5 only
(b) 1, 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4 only

ONLiNE UPSC · Accepted Answer

Capital Market: Financial markets for buying and selling debt and equity securities. In this market (generally) securities of medium and long term of more than one year are bought and sold. It includes instruments like: Equity shares, Debentures, Bonds Preference shares

Money Market: A segment of the financial market in which financial instruments with high liquidity and very short maturities (less than one year) are traded. Money market instruments are basically debt instruments and include Call/Notice money, Repos, Treasury Bills, Cash Management Bills, Commercial Paper, Certificate of Deposits and Collateralized Borrowing and Lending Obligations (CBLO).
Hence, only 1, 2 and 4 are Capital market Instruments.

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M Question 1	⏱ 0
Consider the following; 1. Equity shares 2. Debentures 3. Certificates of deposits 4. Bonds 5. Treasury Bills Which of the above instruments are part of the capital market? (a) 1, 2, 3 and 5 only (b) 1, 3 and 4 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4 only