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Question
ASSERTION: Market for trading long-term financial instruments such as shares and debentures is known as capital market.
REASONING: A capital market provides liquidity to investment in securities.
Options
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.
MCQ
Assertion and Reasoning
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Solution
A is true, and R is not the correct explanation for A.
Explanation:
Both A and R are true, but R is not the correct explanation for A because the capital market is the market for long‑term instruments; it does provide liquidity (through the secondary market), but that doesn’t define it.
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