1.

Which are the main components of financial market on the basis of term of maturity? Explain them very briefly.

Answer»

On the basis of term of maturity, financial market can be classified into:

1. Money market:

Money market is a market of short term securities such as treasury bills, commercial papers, etc.

2. Capital market:

  • Capital market is a market of long term securities such as shares, debentures, bonds, etc.
  • Capital market is further divided into two parts:
    1. Primary market and
    2. Secondary market.


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