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What is the basis for classifying financial markets into money market and capital market?

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Question

What is the basis for classifying financial markets into money market and capital market?

Options

  • Maturity of instruments traded

  • Repayment of government securities

  • Management of money

  • Payment of goods

MCQ
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Solution

Financial markets are classified by the maturity of instruments traded. This basis distinguishes the money market from the capital market.

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