Question

The process of economic development is facilitated by the existence of a well functioning capital market.

• A. True
• B. False

Answer 1

The correct option is A True

The process of economic development is facilitated by the existence of a well functioning capital market- this is a true statement. The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period.