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Chapter 9: Money Market and Capital Market in India Q.1. Complete the following statement

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board

Chapter 9: Money Market and Capital Market in India

Q.1. Complete the following statement:

 

Development financial institutions were established to _________.

 

provide short term funds.

develop industry, agriculture and other key sectors.

regulate the money market.

regulate the capital market.

 

Money market faces a shortage of funds due to ___________.

 

inadequate savings

growing demand for cash

presence of unorganized sector

financial mismanagement

 

Individual investors have lost confidence in the capital market due to __________.

 

lack of financial instruments

high transaction costs

low returns

financial scams

 

Commercial banks act as intermediaries in the financial system to ___________.

 

make profits

accelerate the country's economic growth

mobilize the savings and allocating them to various sectors of the economy

control the credit