Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — Only two
Concept & Option Breakdown
Standard Reference VerifiedCapital 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).
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- Government Bond Market: Long-term dated securities; part of the capital market.
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- Call Money Market: Extremely short-term interbank lending market (1 to 14 days); part of the money market.
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- Treasury Bill Market: Short-term sovereign debt instruments (91, 182, 364 days); part of the money market.
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- 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.
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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