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Question

'If you want to gauge economic status of a country, analyse the status of its capital market'. This statement is pertaining to ________.


A
monetary policy
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B
capital policy
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C
stock exchange
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D
None of the above
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Solution

The correct option is C stock exchange
'If you want to gauge economic status of a country, analyze the status of its capital market'. This statement is pertaining to stock exchange.Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over a long term Stock exchange provides services like, wide dissemination of prices of securities.

Business Studies

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