Which of the following is NOT a component of the capital market? MCQ with Answer and Explanation

Which of the following is NOT a component of the capital market?
A. Insurance companies
B. Call money market
C. Mutual funds
D. Stock exchanges
Answer: Option B
Solution (By JKSSB Mock Tests)
Call money market is a part of the money market (short-term). Capital market deals with long-term funds and includes stock exchanges, mutual funds and insurance companies.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a tool of quantitative monetary policy?
A. Direct action
B. Open Market Operations
C. Credit rationing
D. Moral suasion

Correct Answer: Option B


Explanation:
Open Market Operations (buying and selling of government securities by RBI) is a quantitative tool that affects the overall volume of credit and money supply.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'United Nations Sustainable Development Solutions Network' publishes which report?
A. Global Hunger Index
B. Global Competitiveness Report
C. World Happiness Report
D. Human Development Report

Correct Answer: Option C


Explanation:
UN SDSN publishes World Happiness Report.

This question belongs to: Economy GK Economy Set 1
Question #3
A demat account is used for:
A. holding shares in electronic form
B. trading only in commodities
C. banking transactions only
D. holding foreign currency

Correct Answer: Option A


Explanation:
A demat account holds securities in electronic form.

This question belongs to: Economy GK Economy Set 1