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UPSC Prelims 2023 Question on – Capital Market Government Bonds & Stock Market
Q. Consider the following markets:
1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
How many of the above are included in capital markets?
✅ Correct Answer: [B] Only two
Explanation:
- Government Bond Market: Correct. Government bonds are long-term debt securities and form part of the capital market.
- Call Money Market: Incorrect. It is a money market instrument dealing with very short-term borrowing and lending, usually overnight.
- Treasury Bill Market: Incorrect. Treasury Bills (T-Bills) are short-term government securities and belong to the money market.
- Stock Market: Correct. It facilitates trading in equity shares and is a major component of the capital market.
- Therefore, only the Government Bond Market and the Stock Market are included in the capital market.
