Multiple choice

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

  1. Issue of note

  2. Taking loan from Government

  3. Issue of securities

  4. Taking loan from foreign institutions
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Companies raise long-term capital in capital markets primarily by issuing securities like shares and bonds to investors. Borrowing from government or foreign institutions are specific sources, not the primary mechanism, while issuing notes is a central bank function.

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