Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match List I with List II

List I List II
A. Financial Market I. Platform for buying and selling of existing securities
 B. Money Market II. Long term funds
C. Capital Market B. Money Market
III. Short term funds
D. Stock Exchanges IV. Creation and exchange of financial Assets

Choose the correct answer from the options given below :

Options:

A-III, B-IV, C-II, D-I

A-I, B-II, C-III, D-IV

A-IV, B-III, C-II, D-I

A-III, B-II, C-I, D-IV

Correct Answer:

A-IV, B-III, C-II, D-I

Explanation:

The correct answer is option (3) : A-IV, B-III, C-II, D-I

1. Financial markets - It provide liquidity to financial instruments by providing a ready market for the sale and purchase of financial assets.

2. Money Market - The money market deals with short-term financial assets and instruments, where funds are borrowed and lent for a short period.

3. Capital Market- The capital market involves long-term financial assets, such as stocks and bonds, and is where businesses raise capital for long-term investments.

4. Stock exchange - The secondary tier of the capital market is what we call the stock market or the stock exchange. The stock exchange is a virtual market where buyers and sellers trade in existing securities. It is a market hosted by an institute or any such government body where shares, stocks, debentures, bonds, futures, options, etc are traded.