Question

Q. Consider the following statements regarding the Indian Financial markets:

Which of the above statements is/are incorrect?

• A. 1 only
• B. 2 and 3 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

The correct option is D 1, 2 and 3

Explanation:

Statement 1 is incorrect: The capital market is the market for long-term funds while the money market is the market for short-term funds.

Statement 2 is incorrect: The Indian capital market is broadly divided into the gilt-edged market and the Indian securities market. The gilt-edged market is the market for government and semi-government securities.

Statement 3 is incorrect: Certificates of Deposits are important money market instruments. They are short-term instruments issued by Commercial Banks and Special Financial Institutions. The maturity period varies from 91 days to one year.