Capital Markets Quiz

What is the primary function of capital markets?

• Tax collection

• Regulating inflation

• Mobilizing long-term funds

• Monitoring monetary policy

Which of the following is NOT a function of capital markets?

• Facilitating liquidity

• Risk management

• Fund mobilization

• Issuing currency

Capital markets help in the economic development of a country by:

• Reducing exports

• Promoting investment

• Increasing taxes

• Managing inflation

Who are the main participants in the capital markets?

• Farmers and laborers

• RBI and World Bank

• Investors and borrowers

• Police and judiciary

Capital market mainly deals with:

• Short-term instruments

• Long-term and medium-term instruments

• Real estate

• Agricultural products

Which of the following is a component of the capital market?

• Call money market

• Treasury bills

• Equity market

• Savings account

Which market provides a platform for trading in new securities?

• Secondary market

• Commodity market

• Primary market

• Futures market

What is the main component of the equity market?

• Government bonds

• Mutual funds

• Shares

• Fixed deposits

Which component deals in long-term debt instruments?

• Forex market

• Derivatives market

• Debt market

• Money market

Depositories in capital markets are responsible for:

• Holding physical gold

• Issuing loans

• Safeguarding securities in electronic form

• Collecting taxes