Question

ASSERTION: The capital market is an organised market consisting of the suppliers and users of funds and the agencies and institutions which assist in the flow of funds.

REASONING: Owned funds refer to the funds raised through debentures and loans from banks, financial institutions, and public deposits.

विकल्प

• A is true, and R is the correct explanation for A.

• A is true, and R is not the correct explanation for A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, but R is false.

Explanation:

• The assertion is true because the capital market links suppliers, users and supporting institutions.
• The reasoning is false because owned funds refer to owners’ capital (shares, retained earnings); debentures, bank loans, and public deposits are borrowed funds.