Question

How are capital markets classified based on their functions?

a.

Long-term and Short-term markets

b.

Primary and Secondary markets

c.

Cash and Derivatives markets

d.

Equity and Debt markets

Answer: (b).Primary and Secondary markets Explanation:Capital markets are classified into primary markets (new securities issuance) and secondary markets (trading existing securities).

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Q. How are capital markets classified based on their functions?

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