Question

Capital market deals in

• A. Short-term funds
• B. Medium-term funds
• C. Long-term funds
• D. None of these

Hint:

Capital markets enable businesses and governments to raise long-term funds through the issuance of stocks and bonds.

Answer 1

The Correct Option is C

Step 1: Understand the capital market.
The capital market is a financial market where long-term debt or equity-backed securities are bought and sold. It helps in raising long-term capital for businesses, governments, and other entities.
Step 2: Evaluate the options.
- The capital market is focused on long-term funding needs, such as issuing bonds or shares. - Short-term and medium-term funds are handled by the money market.
Step 3: Conclude.
The correct answer is that the capital market deals with long-term funds.
Final Answer: \[ \boxed{\text{Long-term funds}} \]