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? 

The Correct answer is option 2.

Key PointsCapital Markets: The capital market is where long-term securities like stocks, bonds, and other financial instruments are bought and sold. It helps businesses, governments, and individuals raise capital for investment and growth.

• Government Bond Market:
  • This involves trading government bonds, which are long-term debt instruments. These bonds are part of the capital market because they help raise long-term capital.
• Treasury Bill Market:
  • Treasury bills are short-term debt instruments issued by the government, typically with a maturity of less than one year. Since they are short-term, they belong to the money market, not the capital market.
• Stock Market:
  • The stock market (equity market) is where shares of publicly traded companies are bought and sold, making it a key component of the capital market.
• Call Money Market:
  • ​The call money market deals with very short-term funds, often overnight lending between banks. This is part of the money market, not the capital market.
• Conclusion:
  • Two of the markets mentioned (the Government Bond Market and Stock Market) are part of the capital markets.
• Hence, option 2 is correct.