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Among the following, which is/are the instruments of the capital market?(A) Venture Capital(B) Treasury Bills(C) Certificate of Deposit issued by comm
Question

Among the following, which is/are the instruments of the capital market?
(A) Venture Capital
(B) Treasury Bills
(C) Certificate of Deposit issued by commercial banks
(D) Global Depository Receipts
(E) Inter Corporate Deposits
Choose the correct code from the following:

A.

(B), (D), (E) only

B.

(A), (D) only

C.

(A), (B), (D) only

D.

(A), (D), (E) only

Correct option is B

Correct Option: (2) (A), (D) only
Explanation:
1. The capital market deals with long-term funds (maturity > 1 year), including equity, long-term debt, and specialized instruments like venture capital and depository receipts.
2. The money market deals with short-term funds (maturity ≤ 1 year), such as treasury bills, certificates of deposit, and inter-corporate deposits.
Information Booster:

  • (A) Venture Capital – Long-term funding for startups and companies; capital market instrument.
  • (D) Global Depository Receipts (GDRs) – Represent shares in a foreign company; traded internationally; long-term equity instrument, hence capital market.

Additional Knowledge: 

  • (B) Treasury Bills – Short-term (up to 1 year) government securities; money market instrument.
  • (C) Certificate of Deposit issued by commercial banks – Short-term; money market instrument.
  • (E) Inter Corporate Deposits – Short-term loans between companies; money market instrument.

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