Consider the following markets:
\n1. Government Bond Market
\n2. Call Money Market
\n3. Treasury Bill Market
\n4. Stock Market
\nHow many of the above are included in capital markets?<\/p>\n
[amp_mcq option1=”Only one” option2=”Only two” option3=”Only three” option4=”All four” correct=”option2″]<\/p>\n
1. **Government Bond Market:** Government bonds (like G-Secs) are typically issued with maturities ranging from 1 year to 30 years or even more. These are long-term debt instruments, making the government bond market a part of the **capital market**.
\n2. **Call Money Market:** This is a market where banks lend to and borrow from each other for very short periods, typically overnight or up to 14 days, to meet their reserve requirements. This is a part of the **money market**.
\n3. **Treasury Bill Market:** Treasury Bills (T-Bills) are short-term debt instruments issued by the government with maturities of less than one year (currently 91, 182, and 364 days in India). The T-Bill market is a part of the **money market**.
\n4. **Stock Market:** The stock market deals with equity shares, which represent ownership in a company. Shares are perpetual instruments and represent long-term capital for the company. The stock market is a part of the **capital market**.<\/p>\n