UPSC Prelims 2023 – Question 25

Q25. 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? 
 (a) Only one 
 (b) Only two 
 (c) Only three 
  (d) All four 

Correct Answer: Option (b) 

• The government bond market is a part of the Capital Market. Hence, option 1 is correct. 
• The call money rate is the rate at which short-term funds are borrowed and lent in the money market. Hence, option 2 is not correct. 
• Treasury bills are short-term debt securities issued by the government. Hence, option 3 is not correct. 
• The Stock Market is a part of the Capital Market. Hence, option 4 is correct. 

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