The term 'Primary Market' in the capital market refers to:
A. Market for short-term funds only
B. Market for agricultural commodities
C. Market for trading existing securities
D. Market for issue of new securities
Answer: Option D
Solution (By JKSSB Mock Tests)
The primary market is the market where new securities are issued by companies or governments for the first time to raise capital. The secondary market deals with existing securities.
Explanation:
Supply-side approaches stress policies that expand the productive capacity of the economy by improving incentives, reducing distortions and raising the efficiency of resource allocation.
Explanation:
The portfolio-balance approach treats the exchange rate as the relative price of domestic and foreign assets and emphasises imperfect substitutability among assets denominated in different currencies.
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