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Financial Markets

1.

Stock exchange regulates the capital market.

Answer: B

False; SEBI (Securities and Exchange Board of India) regulates the capital market.

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2.

Money Market is the market in which financial instruments having long-term maturity are dealt with.

Answer: B

False; financial instruments having short-term maturity are dealt with in the money market.

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3.

Providing liquidity is an important function of stock exchange.

Answer: A

True; providing liquidity to securities is an important function of stock exchange.

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4.

It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

Answer: A

(a) Commercial bill

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5.

A company can raise capital through the primary market in the form of

Answer: D

(d) All of the above

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