Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?

Answer: B. Only TWO of the four are part of capital markets (Government Bond Market and Stock Market). The Indian financial market is divided into: - MONEY MARKET: short-term debt (less than one year maturity). Includes Call Money Market, Treasury Bills, Commercial Paper, Certificates of Deposit. - CAPITAL MARKET: long-term funds (over one year). Includes equity (Stock Market) and long-term debt (Government Bonds, Corporate Bonds). (1) Government Bond Market: CAPITAL MARKET. G-Secs are typically long-dated instruments. (2) Call Money Market: MONEY MARKET. Inter-bank lending of one day to 14 days, not capital market. (3) Treasury Bill Market: MONEY MARKET. T-Bills are 91, 182, 364-day instruments — short-term. (4) Stock Market: CAPITAL MARKET. Equity trading platform. So only rows 1 and 4 belong to capital markets. Source: RBI Annual Report / NCERT Class 12 Macroeconomics Ch 3 (Money and Banking).