The term 'Primary Market' in the capital market is the market for:
A. Trading of existing securities
B. Issue of new securities by companies and governments
C. Only agricultural commodities
D. Only short-term money market instruments
Answer: Option B
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.
Explanation:
The IMF provides temporary financial support to countries facing balance of payments difficulties, conducts economic surveillance and offers technical assistance. Long-term project finance is the domain of the World Bank.
Explanation:
Foreign direct investment is a capital account transaction. Software exports, remittances and interest payments are current account items.
Explanation:
Near money refers to highly liquid assets such as time deposits, treasury bills and savings bonds that can be easily converted into cash with little loss of value.
No comments yet. Be the first to start the discussion!