Markets that reallocate liquid funds in fixed amounts are called __________?

Capital markets are financial markets where long-term funds are raised and allocated. They reallocate liquid funds into relatively fixed amounts for investments such as stocks and bonds. This helps channel savings into productive uses for businesses and governments.... Read More

1 FINANCE MCQS

Markets that reallocate liquid funds in fixed amounts are called __________?

  • Capital markets
  • Debt markets
  • Secondary markets
  • Primary markets
Correct Answer: A. Capital markets

Detailed Explanation

Capital markets are financial markets where long-term funds are raised and allocated. They reallocate liquid funds into relatively fixed amounts for investments such as stocks and bonds. This helps channel savings into productive uses for businesses and governments.

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