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