Distinguish between capital market and primary market. - Vidyadip

Question

Distinguish between capital market and primary market.

✓

Answer

Difference between primary market and secondary market:Primary Market: It is a market dealing in securities of short term funds, whose maturity period is upto one year.
Call money, commercial bills, certificate of deposits, etc. are the instruments of money market.
Capital Market: It is a market dealing in securities for long term funds, whose maturity period is more than one year. Shares, debentures, bonds, preference shares, etc. are the important instruments of capital market.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Business, Trade and Commmerce→Business, Trade and Commmerce — all question types→Business Studies STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Enumerate the political causes of business risk.

One of your friends wants to start a partnership firm. In order to prove that his decision is good, what motivational reasons you would provide?

What is the purpose of NABARD?

Why is business considered as economic activity?

The banking system in India dated back to 1750 BC. In ancient India there is evidence of loans from the Vedic period. From the writing of many foreign travellers during Mughal period we came to know about the use of various instruments in the then great commercial centres. In the Mughal period historians found the evidence of loan deeds which were called dastawez. There were two types of dastawez - one was payable on demand and other was payable after a stipulated time. The most important class of credit instruments of exchange evolved in India at that time. Their use was most widespread in the twelfth century, and has continued till today.

On the basis of the given information about the banking system in India, answer the following questions:

(a) Identify the instrument of exchange prominent in the great ancient commercial centres of India.

(b) State two important features of the instrument of exchange identified in part (a).

Sanjay Bhattacharya kept his goods valued at ₹80,000 in a warehouse and had taken a fire insurance policy for the same. On the 25th of Feb., 2017, his stock caught fire. He however was not worried about the same and as he had insured his goods against the risk of fire, he did not even call the fire department for a fire fighting machines. The actual losses amounted to ₹65,000.

How much money can he claim from the insurance company? State the relevant insurance principle in this regard.

Give the features of limited partnership.

State the statutory provisions related to partnership deed.

Which industries are classified as Small Scale Industries? Also give the main features of these industries.

List the major exports and imports in ancient India.