The term 'Primary Market' in the capital market is the market for: MCQ with Answer and Explanation

The term 'Primary Market' in the capital market is the market for:
A. Only short-term money market instruments
B. Only agricultural commodities
C. Issue of new securities by companies and governments
D. Trading of existing securities
Answer: Option C
Solution (By JKSSB Mock Tests)
The primary market is where new securities are issued and sold for the first time to raise fresh capital. The secondary market deals with subsequent trading of existing securities.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a determinant of aggregate demand?
A. Government expenditure
B. Technology level
C. Consumption expenditure
D. Investment expenditure

Correct Answer: Option B


Explanation:
Technology primarily affects aggregate supply. Aggregate demand is determined by consumption, investment, government spending and net exports.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'currency futures' are standardized contracts to exchange currencies at a future date and are traded on:
A. stock exchanges
B. commercial banks only
C. RBI only
D. over-the-counter only

Correct Answer: Option A


Explanation:
Currency futures are exchange-traded standardized contracts.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Swachh Bharat Mission' aims to achieve:
A. open defecation free India and solid waste management
B. only water supply
C. only rural roads
D. only urban sanitation

Correct Answer: Option A


Explanation:
Swachh Bharat Mission aims at open defecation free India and solid waste management.

This question belongs to: Economy GK Economy Set 1