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Question

Which of the following statements is not true with regard to the capital market?


A

The funds are raised for a short period of time.

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B

It is classified into two types.

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C

All of the above

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D

Both debt and equity funds can be raised.

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Solution

The correct option is A

The funds are raised for a short period of time.


Answer (a) The funds are raised for a short period of time.

Explanation:A capital market is a monetary market wherein long-term equity or debt securities are purchased and sold. A capital market is where new issues are made that are bought and sold. The funds are raised for a short period of time is not true in the case of capital markets.


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