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Chapter: Money Market and Capital Market in India· Economics

Identify and explain the concept (any three): Raghu's father invested his money in a market for long term funds both equity and debt raised within and outside the country.

Q.2 (A) (ii) Identify and explain the concept (any three): Raghu's father invested his money in a market for long term funds both equity and debt raised within and outside the country.

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Answer: Capital market

Concept: The capital market is the market for long-term funds. It deals in both equity (shares) and debt (debentures, bonds) instruments raised within and outside the country.

Explanation: Raghu's father invested in long-term equity and debt instruments, which are traded in the capital market (primary and secondary markets). It mobilises savings and channels them into long-term productive investment.

Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report
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