Financial markets in which equity and debt instruments with maturities greater than one year are traded are called:
A) money markets.
B) capital markets.
C) Over the counter exchange.
D) none of the above.

Question

Quizplus · Accepted Answer

Money markets deal with short-term debt securities with maturity of up to one year. Capital markets involve trading of long-term debt and equity instruments with maturities greater than one year. Over the counter exchange refers to trading of securities that are not listed on formal exchanges, but rather traded directly between two parties.

Financial Markets in Which Equity and Debt Instruments with Maturities