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Which of the following statement is/are false about Financial market?

A. Investment in capital market requires huge financial outlay.

B. Money market has no physical location.

C. The primary market is known as new issue market.

D. Money market instruments are riskier both with respect to returns and principal repayments.

E. Financial market consists of capital market and secondary market only.

Choose the correct answer from the options given below:

Solution

Correct Option: 1

A is false; capital market does not require huge outlay as securities have low denominations.

B is true; money market has no physical location and is over-the-counter.

C is true; primary market is the new issue market.

D is false; money market instruments have less risk than capital market.

E is false; financial market has capital and money markets, not just capital and secondary.

False ones: A, D, E.

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