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Financial Market — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeFinancial Market2 Marks
Question
Financial Market
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Answer

  • Every business unit has to raise short-term as well as long-term funds to meet the working and fixed capital requirements.
  • In any economy, there are two different groups, one who invests money or lends money and the other who borrows or uses the money.
  • The financial market acts as a link between these two different groups.
  • The financial market provides a place or a system through which the transfer of funds by investors to the business units is adequately facilitated.
  • A financial market consists of two major segments:
    • Money Market
    • Capital Market
  • Money market deals in short-term credit and the capital market deals in medium-term and long-term credit.

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