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.
• B. It is classified into two types.
• C. All of the above
• D. Both debt and equity funds can be raised.

Answer 1

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.