A company requires Rs. 3 crore for inventory, payment of wages, salaries, maintaining bank balance etc. Which market must it approach?

Financial market

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Money market

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Capital market

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Trading market

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Solution

The correct option is B Money market
Money market is the market from where it can raise money to fulfil its requirement. The reason is that the company requires money for working capital i.e. maximum for 1 year and market for short term is money market.

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Similar questions

To be listed on OTCEI, the minimum capital requirement for a company is

(a) Rs 5 crores

(b) Rs 3 crores

(d) Rs 1 crore

To be listed on OTCEI, the minimum capital requirement for a company is

(a) Rs. 5 crores

(b) Rs. 3 crores

(d) Rs. 1 crore

From the following Trial Balance of Kalyani, you are required to prepare Trading Profit & Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Capital		90,000
Drawings	3,000
Stock on 1-4-2009	45,000
Octroi duty	800
Purchases & Sales	2,00,000	3,12,000
Returns	6,000	2,000
Salaries	10,000
Carriage outward	1,400
Wages	14,000
Insurance	2,000
Discount received		600
Postage	800
Debtors and Creditors	60,000	64,000
Furniture	35,000
Cash in hand	10,000
Machinery	80,000
Rent & Taxes	6,000
Printing & stationery	2,000
Bank Overdraft		7,400
Total	4,76,000	4,76,000

Adjustments:

1) Closing stock was valued at cost Rs 40,000 while its market price Rs 45,000.

2) Depreciate Machinery by 5% p.a.

3) Salary Rs 2,000 and wages Rs 1,000 were outstanding.

4) Insurance Rs 500 was prepaid.

If balance of trade shows a surplus of Rs 300 crore and unilateral payment is Rs 50 crore, how much is the balance on the capital account of balance of payments?

Q. The bank statement shows as overdrawn balance of Rs. 2,000. A cheque for Rs. 500 drawn in favour of a credit has not yet been presented for payment. When the creditor presents the cheque for payment, the bank balance will be ___________ .

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A company requires Rs. 3 crore for inventory, payment of wages, salaries, maintaining bank balance etc. Which market must it approach?

The correct option is B Money market Money market is the market from where it can raise money to fulfil its requirement. The reason is that the company requires money for working capital i.e. maximum for 1 year and market for short term is money market.

The correct option is B Money market
Money market is the market from where it can raise money to fulfil its requirement. The reason is that the company requires money for working capital i.e. maximum for 1 year and market for short term is money market.