This market transfers the money or capital from those who have surplus money to those who are in need of investment. Which of the following does it refer to?

Financial market

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Capital market

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Money market

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None of the above

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Solution

The correct option is A Financial market
Financial markets transfer the money or capital from those who have surplus money to those who are in need of investment.

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Similar questions

Q. Q. With reference to the capital and money markets, consider the following statements:Which of the statements given above is/are incorrect?

1 and 2 only
3 only
1, 2 and 3
2 and 3 only

Q. act as middlemen between those who have surplus funds and those who are in need of those funds.

Q. What are money markets? How are they different from capital markets?

Q. Identify the characteristic of a bank that makes it a middleman between those who have surplus funds and those who are in need of these funds.

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this there is another market in which unsecured and short-term debt instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.

(a) Name the function being performed by the market in the above case.

(b) Also, explain briefly three other functions performed by this market.

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This market transfers the money or capital from those who have surplus money to those who are in need of investment. Which of the following does it refer to?

The correct option is A Financial marketFinancial markets transfer the money or capital from those who have surplus money to those who are in need of investment.

The correct option is A Financial market
Financial markets transfer the money or capital from those who have surplus money to those who are in need of investment.