- Money market deals with short-term instruments. - Capital market deals with long-term instruments and equities. - T-Bills, CPs, CDs are money market instruments. - Shares, debentures, bonds are capital market instruments.
Consider the following statements: Statement 1 : T-Bills, Commercial papers and certificates of deposits are instruments of money markets Statement 2 : Equity shares, preference shares, debentures and bonds are the instruments of Capital markets
Asked in GPSC Prelims CSP 2 2022 · Topic: Money & Banking (Financial Markets: Money Market and Capital Market (Components, Instruments, Role))
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Answer: B. Both Statements 1 and 2 are correct but State‐ ment 2 is not the correct explanation for statement 1
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