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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.
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, 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.
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