Consider the following markets:

Government Bond Market

Call Money Market

Treasury Bill Market

Stock Market

How many of the above are included in capital markets?

Question

Call Money Market and Treasury Bill Market belong to the money market, while the Government Bond Market and Stock Market are part of the capital market. Money Market Instruments:

Treasury Bills: Risk-free, issued by the central bank.
Certificates of Deposit: Receipts for deposited funds.
Commercial Paper: Unsecured promissory notes with higher returns.
Repurchase Agreements: Short-term loans involving resale.
Banker’s Acceptance: Future payment guarantees by banks.

Capital Market Instruments:

Equities: Company shares.
Debt Securities: Interest-bearing financial assets.
Derivatives: Value depends on underlying assets.
Exchange-Traded Funds (ETFs): Investor-pooled funds for capital market instruments.
Foreign Exchange Instruments: Currency agreements and derivatives.

GKToday Admin · Accepted Answer

Only two Call Money Market and Treasury Bill Market belong to the money market, while the Government Bond Market and Stock Market are part of the capital market. Money Market Instruments:

Treasury Bills: Risk-free, issued by the central bank.
Certificates of Deposit: Receipts for deposited funds.
Commercial Paper: Unsecured promissory notes with higher returns.
Repurchase Agreements: Short-term loans involving resale.
Banker’s Acceptance: Future payment guarantees by banks.

Capital Market Instruments:

Equities: Company shares.
Debt Securities: Interest-bearing financial assets.
Derivatives: Value depends on underlying assets.
Exchange-Traded Funds (ETFs): Investor-pooled funds for capital market instruments.
Foreign Exchange Instruments: Currency agreements and derivatives.

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