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Business Studies

Fixed Capital and Working Capital

The term refe...

Question

The term _____ refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.

A

Capital market

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B

Money market

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C

Discounted market

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D

International market

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Solution

The correct option is C Capital market
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.

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Q. Assertion :Capital structure refers to composition of long-term funds. Reason: These include equity share capital, preference share capital, debentures, all debts and all reserves.

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