Q.

Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through -

A. issue of note
B. taking loan from Government
C. issue of securities
D. taking loan from foreign institutions
Answer» C. issue of securities
Explanation: Capital markets provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of savers to those who can put it to long term productive use, such as companies or governments making long term investments. Capital Markets allow businesses to raise long-term funds by providing a market for securities, both through debt and equity.
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