Capital Markets refers to financial resources funded by investments. True or False?

Question

Capital Markets refers to financial resources funded by investments.  True or False?

BlackTom AI · Accepted Answer

The question asks about the statement: 'Capital Markets refers to financial resources funded by investments. True or False?'
Option 1: True. This aligns with the standard understanding that capital markets are the part of the financial system where long-term funding is mobilized, including stocks (equity) and bonds (debt). These markets channel capital from savers to borrowers for extended periods, rather than short-term funding.
Option 2: False. If one argued False, they might be suggesting that capital markets do not involve investments or long-term funds, or that funding is not sourced through investor participation. This misses the core role of capital markets in facilitating the issuance and trading of long-term securities, and it would conflict with how capital markets are defined in finance.
In summary, the essence of capital markets is about long-term financial instruments funded by investors, such as equities and bonds, rather than short-term or non-investment-based financing. The correct framing supports that capital markets are indeed funded by investments oriented toward longer time horizons.

BUSFIN 4236 SP2025 (5326) Capital Markets - FINAL EXAM- Requires Respondus LockDown Browser

Capital Markets refers to financial resources funded by investments. True or False?

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