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Match list I with list II

LIST I Financial MarketsLIST II Explanation
A. Capital MarketI. It facilitates transfer of investible funds from savers to entrepreneurs, seeking to establish new enterprise
B. Money MarketII. It consists of development banks, commercial banks and stock exchange and facilitate economic development
C. Primary MarketIII. Market with low risk, unsecured instruments where assets are close substitutes for cash
D. Secondary MarketIV. It helps existing investors to disinvest and fresh investors to enter market

Choose the correct answer from the option given below:

Solution

Correct Option: 3

A matches II as the capital market includes development banks, commercial banks, and stock exchanges. B matches III since the money market deals in low-risk, short-term unsecured instruments that are close to cash. C matches I because the primary market channels new funds from savers to entrepreneurs. D matches IV because the secondary market enables trading among existing and new investors.

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