The correct answer is option (2) - A-IV, B-III, C-I, D-II
The correct matching of List I with List II is:
A. Capital Market - IV. Mobilize the financial resources on a nation wide scale
B. Venture Capital - III. Capital which is high potential-high risk
C. Angel Investor - I. Fill the gap in startup or early stage financing
D. Specialized Financial Institution - II. Finance for investment in fixed assets
Here's why:
- Capital Market: This is a broad term encompassing the entire network of institutions and mechanisms that facilitate the buying and selling of long-term financial instruments like stocks and bonds. Its primary function is to mobilize financial resources on a nationwide scale, matching investors with borrowers and facilitating capital allocation.
- Venture Capital: This is a type of financing provided to high-growth, early-stage businesses with high potential but also high risk. Venture capitalists provide expertise and guidance alongside funding to help these startups grow and ultimately succeed.
- Angel Investor: These are individuals who invest their own personal capital in early-stage ventures, often in exchange for equity or convertible debt. They typically fill the gap in funding between personal savings and venture capital investment, playing a crucial role in nurturing startups.
- Specialized Financial Institutions: These are institutions like development banks, infrastructure finance companies, or equipment leasing companies that focus on providing funding for specific sectors or types of investments. They often offer financing for fixed assets, like machinery or infrastructure projects, with longer repayment periods and specialized terms.
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