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Question No. 301Interactive Test Mode
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Q301. Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?

Consider the following markets:

  1. Government Bond Market
  2. Call Money Market
  3. Treasury Bill Market
  4. Stock Market How many of the above are included in capital markets?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2023 • Indian Economy

Correct Answer: Option (B) — Only two

Concept & Option Breakdown

Standard Reference Verified

Capital markets deal in medium- to long-term financial instruments (maturities exceeding one year), whereas money markets deal in short-term instruments (maturities up to one year).

    1. Government Bond Market: Long-term dated securities; part of the capital market.
    1. Call Money Market: Extremely short-term interbank lending market (1 to 14 days); part of the money market.
    1. Treasury Bill Market: Short-term sovereign debt instruments (91, 182, 364 days); part of the money market.
    1. Stock Market: Deals with equity shares and long-term ownership capital; part of the capital market. Therefore, only two of the markets (1 and 4) belong to capital markets.
Elimination Heuristic & Exam Approach

Recall the structural division: Money Market = Short-term liquidity instruments (Call Money, T-Bills, Commercial Paper, CDs); Capital Market = Long-term equity and debt instruments (Shares, Bonds, Debentures).

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2023 (Q301)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (B) — Only two

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Frequently Asked Questions — UPSC Prelims 2023 Q301

What is the official answer for UPSC Prelims 2023 GS Paper I Question 301 (Indian Economy)?

The official UPSC answer key for this 2023 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "Only two". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2023 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

Recall the structural division: Money Market = Shortterm liquidity instruments (Call Money, TBills, Commercial Paper, CDs); Capital Market = Longterm equity and debt instruments (Shares, Bonds, Debentures).

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