The money market where debt and stocks are traded and maturity period is more than a year is classified as __________?
Correct answer: B. capital markets
- A. shorter term markets
- B. capital markets
- C. counter markets
- D. long-term marketsTrack Market Trends
Explanation
Capital markets deal mainly in long-term financing, generally with maturities exceeding one year, including bonds and equity shares. Money markets instead handle short-term instruments, normally maturing within one year.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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